Vietnam’s gasoline prices skyrocketed to an all-time high on Friday as global rates have kept rallying over the past weeks.

The price of a liter of the E5RON92 gasoline surged VND2,910 to VND28,980 while that of RON95-III increased VND2,990 to VND29,820, as per a notice released by the Ministry of Finance and the Ministry of Industry and Trade at 3:00 pm on Friday. (US$1 = VND22,875)

Diesel oil, meanwhile, climbed VND3,940 to VND25,260 per liter and kerosene reached VND23,910 per liter.

These prices far surpassed the previous peaks recorded in July 2014. 

This was the sixth consecutive fuel price hike since the beginning of this year, having been expected by local citizens and businesses as world crude oil had topped $130 per barrel.

Friday’s new prices also represented an increase of more than VND5,800, VND6,000, VND7,000, VND6,700 VND per liter, and VND4,600 VND per kilogram compared with January 2 for E5RON95 gasoline, RON95-III, diesel oil, kerosene, and heavy-fueled oil, respectively.

Both consumers and wholesalers have been feeling the squeeze from the constant price rises.

They are expecting a sharp reduction in environmental protection taxes on gasoline products to help curb the surging retail fuel prices. 

The Ministry of Finance on Thursday said it was seeking government approval to lower the environment tax on fuel by half instead of the 25 percent cut as proposed last week.

Accordingly, the tariffs on gasoline and on diesel fuel and lubricants would be halved to VND2,000 ($0.09) per liter and VND1,000 per liter, respectively, if the government passes its proposal.

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