Vietnam Not to Reduce Gasoline Prices despite Global Fall

The Vietnamese Ministry of Finance will not decrease retail prices of gasoline although the global crude oil price for March delivery has fallen to under US$60 a barrel, a anonymous ministerial official said.

 

The crude oil price fell to US$59.39, the lowest level since late December 2005, principally due to sufficient supplies from short-termed sources, increasing reserves of the US and OPEC’s plan to raise production output by 1.5 million barrels a day.

 

The Finance Ministry will reduce its retail prices of gasoline only when the world crude oil price stands around US$50 a barrel, said the official, adding that “Gasoline prices will not be adjusted if the world price is at US$55-60 a barrel.”

 

“The government is considering the proposal to fix petrol prices quarterly, monthly and even weekly and the permission to let oil trading firms set prices, depending on the world realities,” he said.

 

At present, prices of gasoline and oil are set by the government. Oil trading companies are only responsible for importing petroleum products to sell in the country.

 

The latest adjustment to gasoline price was on November 22, 2005. This was the first time Vietnam cut gasoline prices.

 

Without major oil refineries, Vietnam has to import almost all petroleum products for its national energy demand. The country imported 950,000 tons of petroleum products in January of 2006, up 1.8 per cent on-year. The country plans to import 13 million tons in 2006, up 8.4 per cent from last year.
VNA