PM Nguyen Tan Dung has asked the Ministries of Finance and Industry and Trade to regulate petroleum prices in line with the market and to ensure transparent pricing.
The PM made the request at a meeting with the ministries on the afternoon of July 15 to review petrol price regulation in the first half of this year and plans for the second half.
Petrol prices in Vietnam slightly lower than in other regional countries
Reports by these ministries showed large fluctuations in world petrol prices during the first six months of the year, affecting domestic fuel prices.
They said that they have allowed petrol trading companies to adjust prices ten times since the beginning of this year, along with using the petrol price stabilisation fund, which subsidises the fuel companies VND500 per litre of petroleum products.
After the price hike on July 7, gasoline prices were increased to a record high of VND25,640 per litre, including 32.1% or around VND8,300 (USD0.4) per litre in taxes and fees.
Because the the petrol price stabilisation fund was used, domestic petrol prices were somewhat insulated from world price fluctuations, and on June 26 gasoline prices were increased by VND338 per litre instead of VND638 per litre, and VND418 per litre instead of VND918 per litre on July 7.
The ministries estimated that, if the petrol prices had not been raised on July 7, the prices applied on June 26 could have been maintained for only 40 days before the petrol price stabilisation fund would have been exhausted.
At the meeting, Prime Minister Nguyen Tan Dung said that petrol prices have been properly regulated.
The PM requested that petrol companies continue to ensure sufficient supply for domestic production and consumption. However, he added, due attention must be paid to the prevention of petrol smuggling, as petrol prices in Vietnam are currently slightly lower than those in some other regional countries.
“The Ministries of Finance and Industry and Trade must make clear explanations about petrol prices in the world market through the media and ensure transparent petrol pricing in the domestic market,” the PM urged
