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Ministry to keep fuel prices despite world trend

Ministry to keep fuel prices despite world trend

Wednesday, October 10, 2012, 11:04 GMT+7

Fuel prices in Vietnam will remain unchanged, the Ministry of Finance said in a document released Tuesday in response to local headlines suggesting that the rates would be cut in accordance with the recent downward trend on the world market.

>> Firms propose sending fuel prices to record high The ministry admitted that world prices have dropped at certain points during the last few weeks, but most of the slumps were immediately followed by increases. A92 gasoline, for instance, dropped to US$118.2 a barrel on September 20, but bounced back to $125.3 a barrel seven days later. Similarly, while the petroleum price fell to $119.85 a barrel on October 4, it quickly rose back to $124.34 on October 8, the ministry said. The gasoline cost price of local fuel wholesalers, based on the average imported prices over the last 30 days, is now even higher than the retail price. The 30-day average price from September 9 to October 8 was $122.85 a barrel, while the domestic retailing price is VND23,650 a liter. The average prices of diesel, kerosene, and fuel oil are $31.56, $131.38 a barrel, and $673.74 a ton, respectively. The domestic retailing price of A92 gasoline is currently VND733 a liter lower than the cost price, while the respective disparity of diesel, kerosene, and fuel oil are VND710, VND817, and VND564, the ministry said. “Hence, were fuel prices to be adjusted, they would be hiked instead of being slashed,” the ministry stated, adding that it has thus applied the price stabilization method to keep prices unchanged. Fuel wholesalers are now allowed to use VND500 from the fuel price stabilization fund to recoup for the price difference for every liter of fuel sold. Fuel prices have been raised and lowered five times each so far this year, gaining a total of VND4,300 a liter, but losing only VND3,200 a liter. The first increase was released on March 7, sending A92 gasoline price from VND20,800 to VND22,900 a liter. Fuel prices enjoyed another VND900-a-liter hike on April 20, before going through five reductions in a row from May 9 to July 2. But the combined reduction was only VND3,200 a liter. Starting from July 20, local consumers began to suffer four straight petrol price increases, with the highest rise of VND1,1000 a liter falling on August 13.

Tuoi Tre

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