Fuel prices slashed in Vietnam as stabilisation fund deployed
Retail fuel prices in Vietnam were sharply cut from 10pm on Wednesday (March 11) after authorities tapped the petrol price stabilisation fund to curb costs amid volatile global markets.
According to a joint decision by the Ministry of Industry and Trade and the Ministry of Finance, the price of RON95-III petrol – the most widely used grade – fell by VND3,880 to VND25,240 (US$0.95) per litre.
E5 RON92 biofuel also dropped by VND3,620 to VND22,950 per litre.
Oil products were reduced by between VND4,240 and VND7,970 per litre or kilogramme, depending on the product. Diesel now costs VND26,470 per litre, kerosene VND24,410 per litre and mazut VND19,000 per kilogram.
The adjustment marks the second time in more than three years that the Government has deployed the fuel price stabilisation fund within just two days. Under the mechanism, the fund is used at VND4,000 per litre for petrol, kerosene and mazut, and VND5,000 per litre for diesel.
At a meeting with the national energy security task force on March 10, Prime Minister Pham Minh Chinh approved the immediate use of the fuel price stabilisation fund from March 11.
Authorities have also moved to secure the supply. Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the Government had mobilised about four million barrels of crude oil from partners, enough to cover roughly 30–45 days of domestic demand depending on refinery output and domestic consumption.
To support the market, the most-favoured nation import tariff on petrol and some blending materials has been cut to zero. Meanwhile, the Ministry of Finance is proposing to reduce the environmental protection tax on petrol and oil to zero from March 12, which could lower retail prices by around VND1,000–2,000 per litre.
BIZHUB/VNS
