The Ministry of Finance has decided to lower petroleum prices by VND650-VND800 per litre beginning today, June 7.
Gasoline prices cut by VND800 per litre
After two price hikes, this is the third price cut in the domestic market since the beginning of this year, as a result of a fall in prices in the world market.
As a result, price of 92 octane gasoline is reduced by VND800 per litre, to VND21,900 (USD1.04), while diesel 0.05S is lowered by VND700 per litre to VND20,500.
Kerosene is reduced by VND700 to VND20,400 per litre, while fuel oil is cut by VND650 to VND18,250 per kilo.
In addition to the price cut, the ministry decided to maintain the current contribution to the petroleum price stabilisation fund at VND300 per litre.
According to the ministry, the price cut follows the recent trends in the world market.
On June 4, the import price of 92 octane gasoline was down from USD22-USD24 to USD104.9 per barrel.
Prices for diesel fell to USD112.6 per barrel, and kerosene to USD109.91 per barrel.
The ministry noted that petroleum traders are making a profit of around VND1,100 per litre of 92 octane gasoline, based on the average import price over the past month.
Their profits have even mounted to from VND1,700-VND1,800 (USD0.08-USD0.085) per litre based on the import price in the last 7 to 10 days.