Fuel wholesalers were told to keep fuel retail prices steady whilsturging them to dip into the nation's price stabilisation fund for petrolto offset losses.
The joint decision of theministries of Finance and Industry and Trade took effect on December 5,coming after increases in global fuel prices during the last month.
According to a Ministry of Finance report, while the base price of RON92 gasoline was currently 24,097 VND per litre, the retail price wasonly 23,630 VND.
Similarly, each litter of dieseloil 0.05S, kerosene and fuel oil is being sold for 22,310 VND, 22,020VND and 18,510 VND, compared with their base prices of 22,936 VND,22,988 VND and 18,496 VND, respectively.
In a bid tostabilise the economy and curb inflation, the ministries have decidedto keep fuel prices and import tariffs constant.
Looking to offset losses from the price-freeze, wholesalers wereencouraged to increase withdrawals from the price stabilisation fundfrom 200 VND to 300 VND per litre for gasoline, and from 300 VND to 500VND per litre for diesel.
According to the latestreport, the price stabilisation fund was sitting at 58.6 billion VND(2.7 million USD), after swelling to over 3 billion VND (141,911 USD).
Of the 12 petrol dealers who contributed to the fund, six reported positive fund balances.
Petrolimex's September balance stayed over 205 billion VND (9.7million USD), while the Military Petroleum Corporation with over 180billion VND (8.6 million USD).
As of September 30,PVOil reported a negative fund balance of more than 209 billion VND(9.88 million USD), while Petec Trading & Investment Corporation sawa loss of over 145 billion VND (6.86 million USD).
The Ministry of Finance (MoF) has rejected a proposal to reduce thegas tariff to zero percent in the hope of lowering retail prices.
Since December 1, consumers have paid an additional 80,000 VND (4 USD) per 12-kg gas canister.
To help lower the price, the Vietnam Gas Association sent a request toministry to reduce the current 5 percent tariff to zero percent soretail prices will fall by 17,000 VND (80 cents) a canister.
While the Ministry of Industry and Trade also supported theassociation's request, the finance ministry did not think it was thecorrect time for a tariff adjustment.
Nguyen AnhTuan, head of the ministry's price management, told the press that theVietnamese price is based on world prices, which explains a recent risein gas prices in Vietnam.
Tuan said that as localgas enterprises must pay another 267.5 USD for a tonne of gas, it wasreasonable for them to raise the price by about 80,000 VND per 12 kg.
Regarding local rumours that poor management wascausing gas prices to rise, Tuan said finance ministry inspectors haveconducted regular inspections of gas prices and gas enterprises since2010 and found no violations.
He concluded thatafter the ministry considered all factors, including market supply anddemand, production and business conditions, as well as the consumerprice index, officials chose to continue charging the current 5 percenttariff for gas, while closely monitoring gas prices in the local andworld markets.
If gas prices continue to keeprising, ministry officials will suggest that the Government takesuitable measures to stabilise the market, Tuan said.-VNA
The joint decision of theministries of Finance and Industry and Trade took effect on December 5,coming after increases in global fuel prices during the last month.
According to a Ministry of Finance report, while the base price of RON92 gasoline was currently 24,097 VND per litre, the retail price wasonly 23,630 VND.
Similarly, each litter of dieseloil 0.05S, kerosene and fuel oil is being sold for 22,310 VND, 22,020VND and 18,510 VND, compared with their base prices of 22,936 VND,22,988 VND and 18,496 VND, respectively.
In a bid tostabilise the economy and curb inflation, the ministries have decidedto keep fuel prices and import tariffs constant.
Looking to offset losses from the price-freeze, wholesalers wereencouraged to increase withdrawals from the price stabilisation fundfrom 200 VND to 300 VND per litre for gasoline, and from 300 VND to 500VND per litre for diesel.
According to the latestreport, the price stabilisation fund was sitting at 58.6 billion VND(2.7 million USD), after swelling to over 3 billion VND (141,911 USD).
Of the 12 petrol dealers who contributed to the fund, six reported positive fund balances.
Petrolimex's September balance stayed over 205 billion VND (9.7million USD), while the Military Petroleum Corporation with over 180billion VND (8.6 million USD).
As of September 30,PVOil reported a negative fund balance of more than 209 billion VND(9.88 million USD), while Petec Trading & Investment Corporation sawa loss of over 145 billion VND (6.86 million USD).
The Ministry of Finance (MoF) has rejected a proposal to reduce thegas tariff to zero percent in the hope of lowering retail prices.
Since December 1, consumers have paid an additional 80,000 VND (4 USD) per 12-kg gas canister.
To help lower the price, the Vietnam Gas Association sent a request toministry to reduce the current 5 percent tariff to zero percent soretail prices will fall by 17,000 VND (80 cents) a canister.
While the Ministry of Industry and Trade also supported theassociation's request, the finance ministry did not think it was thecorrect time for a tariff adjustment.
Nguyen AnhTuan, head of the ministry's price management, told the press that theVietnamese price is based on world prices, which explains a recent risein gas prices in Vietnam.
Tuan said that as localgas enterprises must pay another 267.5 USD for a tonne of gas, it wasreasonable for them to raise the price by about 80,000 VND per 12 kg.
Regarding local rumours that poor management wascausing gas prices to rise, Tuan said finance ministry inspectors haveconducted regular inspections of gas prices and gas enterprises since2010 and found no violations.
He concluded thatafter the ministry considered all factors, including market supply anddemand, production and business conditions, as well as the consumerprice index, officials chose to continue charging the current 5 percenttariff for gas, while closely monitoring gas prices in the local andworld markets.
If gas prices continue to keeprising, ministry officials will suggest that the Government takesuitable measures to stabilise the market, Tuan said.-VNA
