>>Further slashes in petroleum import taxes
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>>Government stands firm on petrol prices
The Ministry of Finance has approved raising petroleum prices by 16.62% to 24.06%, beginning February 24.
The increase is the first of its kind this year, but it sets a record high for petroleum prices in Vietnam.
Beginning today, the price of 92 octane gasoline will be VND2,900 per litre higher, setting the new price at VND19,300. This constitutes a 17.68% increase. Diesel has also increased by VND3,350, a rise of 24.06%.
The price of kerosene has increased by 20.52%, and fuel oil by 16.62%.
Soaring prices in the world petroleum market, along with changes in foreign currency exchange rates have led to rising prices.
Because of price increases in the market, from February 24, domestic traders have been asked to refrain from using reserves from the price stabilisation fund, and instead save them for future situations when they may be needed, the ministry noted.
Vuong Thai Dung, Deputy General Director of Vietnam National Petroleum Corp (Petrolimex), was cited by VTC News as saying that the increases in domestic petroleum prices should help traders to mitigate their losses, which have risen to around VND3,000 per litre of gasoline sold.
The Government has made efforts to keep the price of petroleum stable in the domestic market since May of last year.
The Ministry of Finance recently decided to eliminate tariffs on two more petroleum products, beginning on February 24. This has been the second import tax reduction on petroleum products this year, and the fourth since December, 2010.
