>> Petroleum prices hit record highs in Vietnam
>> Finance Minister: Petroleum, power price hikes to offset losses
The decision to increase the price of fuel, beginning March 29, has caused worry in Vietnam about inflation.
 |
| New petrol prices |
The Ministries of Industry and Trade, and Finance have approved an increase of between 10.36% and 15.3% on various petroleum products.
This is the second increase this year, the first being on February 24.
At 10:00pm on March 29, the price of 92 octane fuel has been increased by VND2,000 per litre. This new price is VND21,300, which represents a 10.26% rise from the old price of VND19,300.
Diesel has gone up by VND2,600, an increase of 15.3%.
Also, the price of kerosene has been raised by 14.28%, and fuel oil by 13.51%.
Hiep Ngo, senior analyst from Viet Capital Securities Joint Stock Company, said, “We are concerned about inflation, as the recent hikes in petrol and electricity will affect the economy in the coming months. This could add to the country’s already rising inflation rate.”
The Ministry of Finance said that the new rates reflect increases in the price of petroleum in the world marketplace.
The disparity between domestic petrol prices and those in other countries in the region has led to smuggling to places such as China, Laos and Cambodia, according to the ministry.
After the Government completely eliminated the petroleum import tariff, they are left with no other option than a price increase.
Despite measures to curb inflation, Vietnam’s consumer price index (CPI) rose by 2.17% in March, compared with the year before. This contributed to the first quarter’s increase of 12.79%.
Except for 2008, CPI in March and in the first quarter of this year have reached a record high over the past 15 years.
