Ministry says no to fuel wholesalers’ price hike proposal

January 02, 2014 | 09:12
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The Ministry of Finance has asked local petroleum wholesalers to maintain the current retail rates after receiving their proposals for a fresh price hike to help cover their losses, according to a release seen on the official website of the ministry on Tuesday evening.

Accordingly, the ministry gave them the green light to begin to use the money deducted from their price stabilization funds after being required to stop doing so since December 18.

The approval on using deducted money, ranging from VND100-890 per liter sold to consumers, is said to help them made up their losses from selling fuel.

The local petroleum wholesalers said they were suffering losses amounting to VND237-1,219 per liter of fuel sold to the consumers. The rate for gasoline and kerosene were at VND586 and VND1,219 per liter sold, respectively.

All the import tax rates and the rates they can deduct from the funds will also remain unchanged, said the ministry.

The ministry’s requirement aims at stabilizing the local price levels as Tet, the country’s traditional Lunar New Year, is approaching. Tet is often the peak time for price increase given sudden rising demand for goods and services for the weeklong holiday.

Earlier, on December 18, the date when the latest fuel price hike occurred, local petroleum wholesalers were asked to stop using the money deducted from the funds.

Many gas companies in Ho Chi Minh City, including Saigon Petro, Petrolimex, and Pacific Petro, have announced that the retail price for cooking gas  will be reduced by about VND43,000 per 12kg cylinder starting today.

Accordingly, retail gas prices in HCMC will be at around VND443,000-446,000 per 12kg cylinder, cooling down after a VND80,000 price increase early last month.

Explaining the causes of the decline, the companies said that the world price of imported gas in January 2014 has decreased by $ 147.5 per ton down to$ 1,015 per ton.



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