The domestic retail price of petroleum fell by VNĐ862 to touch VNĐ16,504 per litre as of 3pm on Tuesday, the Ministry of Industry and Trade (MoIT) said. — Photo infonet.vn

HÀ NỘI — The Việt Nam Petroleum Association (VINPA) has sent a document to the Ministry of Finance (MoF) in support of the ministry’s proposal to increase the environmental protection tax on oil and gas consumption.

However, VINPA said the proposed increase from the current VNĐ3,000 to VNĐ8,000 per litre of petroleum was too high and instead suggested a rise to VNĐ5,000 per litre. The association also proposed an environmental tax of VNĐ3,000 on diesel (compared to the current VNĐ1,500), an increase in the tax on aviation fuel from the current VNĐ3,000 to VNĐ5,000 per litre, and on mazut from VNĐ900 to VNĐ3,000 per kilo.

The association said the environmental protection tax on oil and gas consumption would ensure responsibility of organisations and individuals in protecting the environment while following the global integration process.

VINPA’s chairman Phan Thế Ruệ affirmed that the association’s proposed tax increase was suitable with the country’s economy, ensuring State budget collection and national energy security as well as the benefit to consumers.

MoF’s deputy minister Trần Xuân Hà said at the National Assembly (NA) meeting earlier this month that the increased level of the environmental protection tax would be decided by the NA’s Standing Committee.

Hà said the collection from the tax increase would restructure the State budget in the context of gradually reducing petroleum imports to zero.

In addition, petroleum prices in Việt Nam have been at the lowest level in comparison with countries with common borders. The tax hike therefore would be one possible solution to better manage petroleum trading and prevent smuggling.

Petroleum price plunges

The domestic retail price of petroleum fell by VNĐ862 to touch VNĐ16,504 per litre as of 3pm on Tuesday, the Ministry of Industry and Trade (MoIT) said.

The price of E5 RON 92 biofuel also dipped by VNĐ805 to VNĐ16,349 per litre. The prices of diesel and kerosene were also reduced by VNĐ650 and VNĐ738 per litre to VNĐ12,835 and VNĐ11,380 per litre, respectively. The price of mazut went down VNĐ369 to VNĐ10,666 per kilo.

The MoIT and the MoF also decided to keep the use of the price stabilisation fund for petroleum unchanged.

The local retail petrol prices have been adjusted 12 times so far this year including three increases, five decreases and three times they remained unchanged.

In the latest adjustment on June 5, the price of petroleum increased by VNĐ303 to VNĐ17,366 per litre. The price of E5 RON 92 biofuel also rose by VNĐ283 to VNĐ17,154 per litre. The prices of diesel and kerosene went up by VNĐ225 and VNĐ326 to VNĐ13,485 and VNĐ12,118 per litre, respectively. The price of mazut was set at VNĐ11,035 per kg, an increase of VNĐ139.

Over the past 15 days, the price of petroleum in the world market has seen a downward trend to US$58.1 a barrel. — VNS