Vietnam will not increase retail prices of gasoline at least in April in spite of recent global price hikes, affirmed by Ministries of Trade and Finance.
The two ministries are closely monitoring the world oil price movements to consult the Government about the petroleum pricing mechanism.
Oil importers said, with the current petrol import price of US$81 a barrel, they lose about VND1,000 (6.2 US cents) on every liter.
The current retail prices of A92 and A95 gasoline prices in Vietnam are now at VND9,500 and 9,800 a liter, compared with VND14,000-15,000 a liter in neighboring Cambodia.
However, oil importers affirmed they will import enough petroleum products in spite of increasing losses.
At present, in Vietnam, the Government sets pump prices of petroleum products, not petroleum trading firms, which are only responsible for importing refined oil to sell in the country, not fixing prices.
Losses from sales of the distillated fuel will be compensated by the State Treasury.
Last year, state coffers subsidized domestic petrol importers a whopping VND10,000 billion (US$628 million) in tax breaks to keep domestic gas prices relatively stable.
Vietnam, the third largest oil producer in Southeast Asia, spent US$1.3 billion on importing petroleum products in the first three months of this year.
This year, the country plans to import 13 million tons, up from last year’s 11.3 million tons worth US$5.1 billion.
VNA
Vietnamese
