Petrol price control efforts put forth by Ministry of Finance

December 02, 2010 | 21:24

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The Vietnamese Ministry of Finance decided to lower petroleum import taxes by 5% beginning December 1.

Petroleum price hikes tough on customers (illustrative photo)

The move is aimed to prevent domestic petroleum retail price hikes amid the sharply increasing petroleum prices on the world market.

The tax reduction is applied to a number of petroleum products of Group 2710. Accordingly, the import tax of 12% is for both plumbiferous gasoline and unleaded gasoline. The import tariff level of 5% is for diesel oil used for high-speed engines and other diesel fuels.

The ministry said the preferential import, export tax applied on a number of petroleum products of group 2710 will continue from January 1, 2011 while abrogating the previous regulation dated November 15.

According to the Finance Ministry, petroleum traders are still losing around VND700 (USD0.035) per litre of petrol despite a compensation of VN1,200 (USD0.06) per litre of petrol from the petroleum price stabilisation fund.

On December 1, petroleum traders in Vietnam raised retail gas prices by VND38,000 (USD1.9) per 12-kg canister, highest price so far this year. This is the fifth consecutive gas price increases with the latest rise early in November at VND25,000 (USD1.28) per 12-kg canister since mid-August.

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