Vietnam maintains fuel prices, 3rd time since Jan
Vietnam maintains fuel prices, 3rd time since Jan
On Wednesday the Ministry of Finance released its final decision on the management of fuel prices after pressure to hike prices grew over the last few days.
The ministry has decided to maintain the local retail fuel prices, import duties, and the deduction from the fuel price stabilization fund. The decision was made following an order from Prime Minister Nguyen Tan Dung after a government meeting on Tuesday.
Fuel companies have suffered losses between VND986 and VND2,319 a liter over the last few days due to rising global prices, the ministry said.
Wholesalers are thus allowed to use VND2,000 from the fuel price stabilization fund to reduce losses on every liter of gasoline they sell. The figures for fuel commodities range from VND650 – VND1,150 a liter, depending on the type.
Insiders had suggested cutting import duties to help businesses reduce losses and avoid negatively impacting local consumers with a fuel price hike.
Global fuel prices saw slight changes this week, with A92 gasoline quoted at US$129.9 a barrel on Monday’s closing session in Singapore, where Vietnam sources most of its fuel. This was a $3 a barrel decline from last week.
Local dealers, meanwhile, have complained that supply from wholesalers has fallen short as of early this week. Even worse, their commissions have been significantly slashed, they said.
Commissions dropped to only VND150 – VND200 a liter on Tuesday, while the transport cost was as much as VND100 a liter.
Fuel dealers thus incurred a VND350 loss on every liter of gasoline sold, they lamented.
This is the third time in a month the finance ministry has asked local wholesalers to maintain fuel prices.
On February 8, the ministry told wholesalers not to raise prices, while allowing them to use more money from the fuel price stabilization fund. Wholesalers were then allowed to use VND1,000 from the fund on every liter of gasoline, while the previous rate was VND500.
Fuel retail prices were hiked six times in 2012, gaining a combined VND6,050 a liter. There were also six price cuts, but worth a total of only VND3,700 a liter.
The latest adjustment was on November 11, when gasoline price was slashed VND500 per liter to VND23,150 a liter. Price was sent to a record high rate on April 20, VND23,800 a liter.
tuoitrenews
