August 29, 2008

Vietnam Orders Cut in Petrol Prices

Text of report in English by state-run Vietnamese news agency VNA website

Hanoi (VNA) -Retail prices of A92 petrol and kerosene fell by 1,000 VND per litre on August 27 to 17,000 VND and 18,000 VND respectively, following a decision by the Ministries of Industry and Trade, and Finance.

This is the second time the ministries have cut petrol prices. The earlier cut occurred on August 14, with A92 petrol dropping 1,000 VND per litre to 18,000 VND per litre.

The decisions were made in response to the decreasing prices of oil on the global market.

The ministries set the decrease at 1,000 VND/litre so petrol distributors could offset losses incurred in the first seven months of this year.

Do Huu Hao, deputy minister of industry and trade explained, "By the end of July, importers had combined losses of 3 trillion VND (182 million USD) for gasoline alone."

If oil prices range between 115-120 USD per barrel, and importers profit over 1,000 VND per litre, it is expected they will make up their losses by the year's end," Hao said.

Vietnam consumed around 15 million tonnes of oil and gasoline every year, he said.

While world energy saving percentages hovered at around 30 per cent, Vietnam had implemented measures to save on only 10 per cent of the country's energy, said Hao.

The two ministries are considering a draft that would impose value added tax on petrol, to raise consumer awareness about the limited resource. It will be submitted to the National Assembly for approval.

Originally published by VNA news agency website, Hanoi, in English 28 Aug 08.

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