The retail prices of A92 gasoline and diesel will reduce by VND500 and VND300 a liter starting 10 pm on Wednesday night, according to the Ministry of Finance.
Specifically, the retail price of A92 gasoline and diesel will be VND23,300 and VND21,600 a liter respectively, said the ministry.
Kerosene and fuel oil price, on the other hand, will remain the same, at VND21, 400 and VND19,200 a liter respectively.
Meanwhile, the ministry has also decided to resume the import duties on petroleum products, currently at 0 per cent.
In particular, the tax rate for gasoline and diesel is 2 per cent, while that for oil and fuel oil is 3 per cent.
The decision came after the recent meeting between the finance and industry-trade ministries with a governmental body on a number of contents related to gasoline prices, including the adjustment in retail price and import duties.
According to Finance Minister Vuong Dinh Hue, the viewpoint of his agency at this time is to spare the maximum supports for business activities and the people's lives.
This is the first gasoline price decrease in 2012.
Earlier, the price of the commodities have been increased two times on March 7 and April 20 with the a total of VND3,000 a liter.
Since the latest readjustment on April 20, world oil prices have continued to cool down.
Specifically, crude oil prices on the New York market decreased from nearly $103 a barrel to more than $96 dollars a barrel on Wednesday.
According to Vietnam National Petroleum Corp, better known as Petrolimex, the wholesale price of A92 gasoline in the Singapore market has also slipped to about $121.6 a barrel, compared to more than $128.1 a barrel on April 20.
If the import price and other fees and trading costs are included, the retail prices for A92 should be VND22,200 a liter. Thus, with the current retail price of VND23,800 a liter, the average profit rate for petroleum traders were VND1,200-1,300 a liter.
According to calculations by the Ministry of Finance, the average price of petroleum products in the last 30 days, the basis for making the base price, has fallen VND828 and VND542 a liter of gasoline and diesel respectively.
As a result, the new price cut has harmonized the interests of all sides, said the ministry.
Last year, the domestic petroleum market has gone through two price increases in February and March, before easing VND500 in April.
In late Wednesday evening, there was rumored that the retail price of gasoline would be cut by VND400 a liter, from VND23,800 to VND23,400 a liter. The restoration of import duties was also leaked out.