The Vietnamese government has decided to increase the retail prices of petroleum products from April 27, 2006 due to world oil price tensions, the Trade Ministry said.
This is the first time this year Vietnam increases the retail prices of the distillated fuel. The news comes as a surprise as the government announced there would be no increase just days ago.
Accordingly, pump prices of gasoline will be added VND1,500 (US$0.094) to every liter. A liter of A92 petrol now costs VND11,000 (US$0.7), A90 gasoline VND10,800 and A83 gasoline VND10,600.
Kerosene and diesel oil prices will rise by VND400 per liter to VND7,900, stated the decision signed by Trade Minister Truong Dinh Tuyen on April 27.
Market experts said the sky-high oil price in the world market is the core reason for the new rise.
New York crude oil price reached a record high of US$75.35 a barrel on Monday and hovered at US$73 plus a barrel Wednesday, up from US$66.74 a barrel early this month.
The exorbitant global oil price caused oil traders in the country to incur a loss of VND1,500 on a liter of petrol and VND1,900 on a liter of diesel oil.
In response, the Ministry of Finance removed all import duties on petroleum products to 0 per cent from the previous 5 per cent.
At present, sales of petroleum products, except petrol, are subsidized by the State Budge. In return, the government sets retail prices of petroleum products in the country, not oil traders.
The last price rise was in mid-August 2005 and the latest reduction was made in late November 2005.
With no major oil refineries, Vietnam has to import most of its petroleum products to feed the national energy needs. In the four ten months of this year, the Southeast Asian nation imported 3.53 million metric tons of petroleum products worth US$1.81 billion, down 10.3 per cent in volume but up 22.4 per cent in value.
The first oil refineries are slated for operation in early 2009.
Labour
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