Vietnam to Loosen Control over Domestic Petrol Prices

The Ministries of Finance and of Industry and Trade have assigned to speed up compilation of necessary documents to make an amendment to Decree No. 55 on petrol price management in order to allow petrol distributors the power of adjusting domestic retail petrol prices in regard to world rates without asking permission from the ministries.

 

According to the amended decree, the state will only intervene by releasing documents to urge petrol distributors to adjust retail prices when the global price increases or decreases to levels that are higher or lower than 15 per cent in comparison with domestic prices.

 

If the world price increases by 3 per cent within 10 days, enterprises will have to keep sale prices unchanged, the amended decree says.

 

If the global price increases or drops by 5 per cent or more within 10 days, enterprises will have the right to adjust retail prices; however, the adjustment levels must not be higher than 5 per cent, it says.

 

If the world price continues to increase or decrease in the subsequent 10 days, enterprises will also be able to apply new sale prices, but each of the price increases or decreases must not be higher than 5 per cent in comparison with the previous price.

 

Decree No. 55, which has been in effect since May 1, 2007, allows enterprises to set retail prices themselves in accordance with market supply and demand. However, enterprises have to submit plans on price adjustment to concerned agencies for approval one week before the price can be adjusted. (Laborer)