Vietnam Cuts Diesel Price by 4.54 per cent to VND10,500/Liter

The Ministries of Industry and Trade, and Finance have recently decided to slash domestic retail price of diesel by VND500 or 4.54 per cent per liter to VND10,500 per liter in a move to solve difficulties for domestic production and transport companies.

 

Under the price cut decision effective from 10:00 pm February 9, diesel 0.05S is offered at VND10,500 per liter.

 

Petroleum traders that did not cut retail prices of diesel due to objective reasons are allowed to postpone the rate cut ahead of 8:00 am of February 10, the ministries said.

 

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

 

Earlier, Vietnam National Petroleum Corp (Petrolimex), the biggest petroleum distributor holding a 60 per cent market share in Vietnam, proposed the ministries lower price of diesel by VND300/liter or 2.72 per cent to VND10,700/liter and hike price of gasoline by VND500/liter or 4.54 per cent to VND11,500/liter but the ministries declined.

 

Petrolimex's Deputy General Director Vuong Thai Dung said that with the new petroleum import tariff of 25 per cent his company is making profit of only VND200-300/liter of petroleum but suffering a loss of VND1,000/liter of gasoline.

 

The Ministry of Finance (MoF) has decided to lower petroleum import tariff to 25 per cent effective from February 10 from current 35 per cent. The new tax level will be applied for items belonging to group 2710 including lead and non-lead petrol, petrol for air planes, and naptha and reformatic petrol. (Local sources)