The retail prices of petrol in Vietnam will be increased shortly in the wake of soaring world oil prices and escalating Iran political tensions, signaled the Ministries of Trade and Finance.
World crude oil prices closed with record highs above US$72 a barrel on Wednesday amid worries of supplies from Iran and Nigeria, as US energy stocks dropped.
Tracking world rates, the Ministry of Trade Wednesday asked petrol trading enterprises to inventory gasoline stocks and report on import plans, signaling increases are on their way.
The Ministry of Finance Thursday said it was closely monitoring global oil movements to work with the Ministry of Trade on retail price adjustments. The last adjustment in gasoline price took place November 22, 2005 when Vietnam made its maiden reduction in petrol price.
Also on Wednesday, Trade Deputy Minister Phan The Rue asked oil importers to ensure sufficient market supplies.
Additionally, oil importers, all State-run, are required to implement petrol imports as scheduled.
If global rates continue to skyrocket, the Ministry of Trade proposed the government hike the retail price to ensure oil imports remain profitable.
The ministry directed oil importers to increase control over distribution to prevent speculation and smuggling.
The ministry also alerted market watchdogs to block petrol smuggling across the border. Vietnam’s gasoline prices are VND9,500 -10,000 per liter, whereas in Cambodia consumers are paying VND14,000-15,000 per liter.
Vietnam spent $1.3 billion on 2.7 million tons of petroleum imports in the first three months of this year.
Last year, the nation imported 11.3 million tons of petroleum products costing $5.1 billion, a 2.6 per cent increase in volume and 40 per cent rise in value compared to 2004.
In 2005, the State coffers subsidized domestic petrol importers a whopping VND10 trillion ($628 million) in tax breaks to keep domestic gas prices relatively stable.
Laborer, Thanh Nien
Vietnamese
