Petrol price cut by 2 cents per litre

November 13, 2012 | 09:11

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The price of RON 92 gasoline was slashed by 500 dong (2 US cents) to VND23,150 (US$1.1) per litre yesterday evening in accordance with a joint decision by the ministries of Industry and Trade and Finance.

Customers buy petrol at a station on Tran Hung Dao Street. The domestic price of gasoline was cut by 500 dong to VND23,150 per litre yesterday

A similar cut was also applied for the price of mazut oil, which now costs VND18,150 ($0.86) per litre.

Global petrol prices had continued to decline this month, and advantageous market developments facilitated the moves, the ministries said. For the past month, the average retail price of RON 92 was about 522 dong higher than basic prices calculated by enterprises.

Diesel and kerosene prices remained unchanged while enterprises continued to suffer losses, but the ministries have asked them to stop using the price stabilisation fund to subsidise the two commodities, which have seen subsidy levels of 300 dong and 500 dong per litre respectively.

The ministries said they would continue to closely observe global petrol price developments and would ask local retailers to reduce prices in suitable conditions in order to assure consumer interests.

Since the beginning of this year, domestic petrol prices have been increased six times with a total rise of VND6,050 ($0.29), and also cut six times with a cumulative decline of VND3,700 ($0.17).

In a report to the National Assembly, Minister of Finance Vuong Dinh Hue said financial authorities were examining the results of inspections of key petrol dealers implemented this year, and would punish those who violated regulations related to prices, taxes and agent bonuses.

VNS

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