3:26:23 PM | 7/8/2005
After receiving approval from the Prime Minister, the Ministry of Finance (MoF) and the Ministry of Trade (MoT) released a decision to raise the retail price of petroleum products on principle that the State will not offset losses of companies trading the products.
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Accordingly, the retail price (including value-added tax) of petrol grades RON 92, RON 90 and RON 83 will be increased to VND7,500, VND7,300 and VND7,100 a litre nation-wide, respectively.
The price hike received support from the public at large. Most people responded positively to the government's move, saying it’s a necessary decision because world crude prices have soared recently.
According to Deputy Finance Minister Nguyen Ngoc Tuan, despite the State exempting import tax, the price of a litre of imported petrol product in October was still around VND500 higher than the retail sale price domestically.
At that time, the State had to offset around VND4.2 billion (US$267,500) a day, or around VND128 billion (US$8.2 million) a month, or VND384 billion (US$24.5 million) per quarter.
The decision of the MoF and MoT was made on a basis that the world crude price had stood at a level of over US$50 per barrel for a long period, showing a new stable point in the price of the product.
Moreover, the increase was also pursuant to the Prime Minister's decision No. 187/2003/QD-TTg dated
The price adjustment on November 1 ensured the principle that the State will not offset losses of petrol trading firms, and is consistent with the motto that the State, users and petroleum product trading enterprises will join hands in sharing difficulties when world crude oil prices rise.
According to the Prime Minister's instruction, the price of electricity, coal and cement will not rise in the near future.
The new petrol price in
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