Vietnam sees first decrease in gasoline prices this year

July 29, 2014 | 09:09

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The prices of petroleum products have been cut by VND330-VND350 per litre beginning from July 28.

Petroleum prices start to fall in early July 28.

The price reduction follows a request by the Ministry of Finance. It is the first price cut for 92 octane gasoline since the beginning of this year.

As a result, one litre of 92 octane gasoline will cost VND25,310, and a litre of diesel VND22,330. The price of fuel oil remains unchanged.

This is the second price reduction for diesel products in ten days. However, this is the first reduction after after five consecutive price hikes since early 2014 for regular fuel. The price reduction is modest in comparison to the five combined price hikes, amounting to a total of VND1,450 per litre.

Prices of of other petroleum products have also seen reductions, most bigger than that of gasoline. There have been seven price cuts for diesel, four for kerosene and three for fuel oil.

According to the Vietnam Petroleum Association, the fall in the domestic petroleum prices is a result a fall in price on the international market, especially that of Singapore. On July 24, prices of 92 octane gasoline fell to USD115.6 per barrel, kerosene fell to USD118.81 per barrel and fuel oil to USD597.87 on the in Singapore.

Despite the price cut, local petroleum companies are still recording profits thanks to the use of the petrol price stabilisation fund.

VietNamNet, dtinews

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