>> December gas prices hit record high for 2010
>> November brings gas prices up
The Vietnam Gas Association (VGA) is seeking an approval from the Ministry of Finance to cut gas import taxes to 2% from the current rate 5%.
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| Consumers have faced consecutive gas price hikes since November |
The request was made by the VGA Chairman Nguyen Si Thang, who said that his association sent an official dispatch to the ministry on December 3 for the proposal.
The move is among measures to stabilise the domestic gas market which has seen consecutive price hikes since November. Currently, up to 60% of gas used in Vietnam is imported.
Thang added that currently, gas traders in Vietnam are facing many difficulties due to high and unstable gas prices, which is due to their dependence on world prices and the import tax.
According to the association, retail gas prices are now running at between VND330,000 (USD16.5) and VND360,000 (USD18) per 12-kg canister, depending on different brands.
The chairman noted that without import tariff cuts, local gas prices will continue rising amid the global economic circumstance.
The ministry has maintained the gas import tax rate of 5% for a decade since the gas price in the world market was only USD200/tonne while the world price has rocketed to USD790/tonne currently.
