>> Cuts in global oil prices yet to benefit domestic consumers
The Ministries of Finance, and Industry and Trade have decided not to increase petroleum prices but have hiked import taxes on some products.
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| Vietnam has yet to cut petrol prices despite a downward international trend. |
As a result, from June 9, import tariffs on diesel and kerosene have been increased to 5% from an earlier zero percent.
Petroleum traders have to set aside VND100 per litre of gasoline sales for the petroleum price stabilisation fund.
According to the Ministry of Finance (MoF), petroleum prices on the world market have yet to establish a clear trend since the end of May. The tax increase and the collection for the petroleum price stabilisation fund are aimed at stabilising the local market and raising government funds, it noted.
Petroleum traders are making profit of between VND100 and VND200 per litre of product sold, which is too humble for a domestic price cut, the MoF said.
The tax hike is reasonable as traders have earned around VND700 per litre of diesel and kerosene thanks to the price fall on the world market in recent weeks.
The state budget has incurred a deficit of around VND20.136 trillion (USD972.75 million) since 2010, including VND10.047 trillion (USD485.3 million) in the past four months due to reduced tax collection.
The country has also used around VND6.369 trillion (USD307.7 million) from the petroleum price stabilisation fund to help stabilise the domestic market from October 22, 2010 through to February 24 this year, when the world petroleum market experienced a steep rise in prices.
After two price hikes since the beginning of this year, 92 octane gasoline is currently sold at VND21,300 (over USD1).
