A 30-percent rise in local gasoline prices in the year to date is reasonable because the global oil price has surged 38 percent since February, Vietnamese Minister Finance Dinh Tien Dung said during a recent TV program. The ministries of finance and trade-industry last Wednesday gave the green light to the second gasoline price hike in May with a six percent rise, bringing the retail gasoline price in Vietnam to VND20,100-21,030 per liter. With the latest price increase, the second consecutive price hike this month and the third since the beginning of the year, current gasoline prices have gone up over 30 percent, or around VND4,800 per liter, so far this year. The recent adjustment in fuel prices in Vietnam matches the fluctuations of global prices, Minister Dung said during the “People Ask – Ministers Answer” TV program, which was aired by national broadcaster Vietnam Television (VTV) on Sunday evening. As of May 21, the world oil price was at US$60.72 a barrel, up more than 38 percent compared to the lowest price, at $43.9 per barrel, in February. "Meanwhile, the domestic retail price only increased by 30 percent, so we believe that this hike is justified," the head of the finance ministry said. Regarding the increase in environmental tax on gasoline, from VND1,000 to VND3,000 per liter, Minister Dung said that this is not the main reason why gas prices have risen so sharply recently since the import duty on gasoline also went down during the period, from 35 percent to 20 percent. "According to our calculations, the import tariff reduction is larger than the environmental tax increase," he said. In 2014 and the first months of 2015, gasoline prices were complicated and unpredictable. In the first half of 2014, prices fluctuated at a high level, and began to go down in July 2014. Global petroleum prices plummeted from September 2014 to January 2015, but started to rise again in February, he said. To cope with the global oil price movements, the Ministry of Finance said that retail gasoline prices should be managed in harmony with international prices and the socio-economic situation of the country, Minister Dung said. As a result, when the input costs go down, the price will decline, but when the prices need to be stabilized given a global price increase, the ministry will use other tools like reducing import duties, using the stabilization fund or raising quotes in order to maintain the government’s inflation target and macroeconomic stability, he added. Meanwhile, Vu Huy Hoang, Minister of Industry and Trade, told news website VnExpress that the effect of the environmental tax increase and the import tariff cut is minimal. “The adjustments were carefully calculated. I am fully responsible for them,” he said. Regarding oil products, consumers have benefited even more than before the tax adjustment. Specifically, the price of diesel dropped VND2,300 dong per liter, while the prices of kerosene and fuel oil dropped from VND500-1,000 per liter depending on the type, he said. “The domestic retail price increase was due to world oil price increases only,” he said. In the last few days global oil prices have gone down, but the price has already risen when calculated for the period of 15 days ending on May 19, Minister Hoang said. Regarding world oil prices, people must speak of the petroleum products in the Singaporean market. Petroleum products are generally 30 percent more expensive than crude oil. If crude oil costs $60 per barrel, petroleum products will be about $80 per barrel, Minister Hoang added.
More
S.Korea commits continuous support for Vietnam’s healthcare
South Korea was impressed by the Hue Central Hospital's achievements
Read more
Into the heart of Vietnam’s ‘ammunition valley’
6 years agoVietnamese love for parents: it’s filial affection, but not duty
Despite the availability of nursing homes and daycare services, many Vietnamese take their parents under their wings
6 years agoStatue unveiled as S.Korea apology to Vietnam
7 years agoHighlights
Vietnam asks vessels with Vietnamese on board to avoid passing through Red Sea
Tensions in the Red Sea are escalating
Photos
Artist paints murals on house to raise awareness of COVID-19 prevention in Hanoi
He drew the virus, vaccine, and earth on the exterior walls of a house
Latest news
Japanese volunteers promote tourism across Vietnam
Currently, there are seven volunteers operating in tourist destinations across the country, namely Da Nang, Da Lat, and Can Tho
Vietnam’s Dong Nai lays foundation stone to restore Long Hoa Pagoda
After three years of renovation, the pagoda will have five storeys
Vietnam asks vessels with Vietnamese on board to avoid passing through Red Sea
Tensions in the Red Sea are escalating
2 Chinese men arrested for attempting to illegally send 21 Vietnamese to Laos
The cost of illegal exit was set at 280 Chinese yuan (US$38.7) per person
A glimpse of location set for future night quarter in Ho Chi Minh City
Binh Tay Market, a renowned architectural relic and tourist attraction in the city, will spotlight the night quarter
Renovation underway at abandoned downtown park in Vietnam’s Nghe An
Park-goers in recent years discovered that the play zone and some other facilities of the park became deserted and aging
Vietnamese nurse on vacation saves Indian tourist from sudden cardiac arrest
Her timely and accurate first aid helped save the man's life
Vietnam, US pledge to push comprehensive strategic partnership forward: foreign ministerial dialogue
The two sides also agreed to expand cooperation in building semiconductor ecology and diversifying supply chains
Vietnam calls for prompt compliance with UNSC’s resolution on immediate Gaza ceasefire
Vietnam has repeatedly called for an end of violence in Gaza and strongly condemned attacks on civilians and civil infrastructure in the region
Vietnam attends ASGP meeting in Geneva
The meeting took place between Sunday and Tuesday this week in Geneva, Switzerland