Vietnam Cuts Diesel Price by 8.33 per cent to VND11,000/Liter

The state-owned Vietnam National Petroleum Corp (Petrolimex), the biggest petroleum distributor holding a 60 per cent market share in Vietnam, has recently decided to slash domestic retail price of diesel by VND1,000 or 8.33 per cent per liter to VND11,000 per liter as global oil price plunged below US$40/barrel in recent weeks, the Ministry of Finance said.

 

Under the price cut decision effective from 11:00 am today [December 24], diesel 0.05 is offered at VND11,000 per liter and diesel 0.25 at VND10,950 per liter.

 

Prices of gasoline and other types of oil products are still kept unchanged, Petrolimex said.

 

This is the third time Petrolimex has cut diesel prices so far this month to solve difficulties for domestic production and transport sectors.

 

A representative from Petrolimex expressed his company would suffer a loss of several hundreds dong for every liter of diesel with the price cut, adding that the state should consider lowering import tax for diesel to support their production as well as pave the way for stimulating investment and consumption.

 

Regarding to possibility of petroleum decrease, the official said that it is not likely to see the petrol cut further as local petroleum traders are now imposed the highest import tariff rate of 40 per cent.

 

The ministry recently decided to raise import tariffs of gasoline, kerosene, mazut, and jet fuel by 5 per cent to 40 per cent, the maximum import level for petroleum products permitted by the state. The import tax for diesel was also increased to 25 per cent from current 20 per cent. (VietnamNet)