The price of the popular RON95 gasoline has been lowered by around US$0.13 per liter in Vietnam, the highest reduction so far this year, according to a periodical fuel price adjustment announced by relevant ministries.

The Ministry of Finance and the Ministry of Industry and Trade jointly announced price reductions for various fuel products with effect from 0:00 on Monday, in tandem with the application of environmental protection tax reduction approved by the National Assembly Standing Committee.

The price reductions were made following a recent decrease in world prices compared to July 1, with a drop of 12.9 percent for RON92 gasoline, used to make biofuel E5, 11.83 percent for RON95, and 11-13 percent for oil products.

Accordingly, the domestic price of biofuel E5RON92 has been slashed by VND3,103 ($0.13) to VND27,788 ($1.19) per liter while RON95 has seen its price fall by VND3,088 (nearly $0.13) to VND29,675 ($1.27) per liter.

Similarly, 0.05S diesel oil has been priced VND26,593 ($1.14) a liter, down by VND3,022 ($0.13) per liter; kerosene at VND26,345 ($1.12) per liter, a reduction of VND2,008 ($0.08); and mazut oil at VND17,712 ($0.76), dropping by VND2,010 ($0.08) per kilogram.

The two ministries decided to impose a surcharge on all the fuels to replenish the national fuel price stabilization fund, with the biofuel and RON95 subject to a extraction rate of VND950 per liter sold.

The extraction levels for each liter or kilogram of diesel oil, kerosene, and mazut oil sold are VND550, VND800, VND950, respectively.

In recent times, the two agencies have used this fund to offset the increase in domestic fuel prices that have had adversely impacts on business and production activities and pushed up the prices of food and other consumer goods across Vietnam.

In addition, the National Assembly Standing Committee on July 6 agreed to cut environmental protection tariffs further, by VND1,000 ($0.04) for gasoline and VND500-700 ($0.02-0.03) for diesel, lubricant, grease and mazut oil, taking effect on Monday.

Domestic fuel prices have experienced 18 adjustments since early this year, including five ups and 13 downs, with the most recent being the deepest cut so far.

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