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Vietnam's petrol prices go up at the pump
Petrol in Vietnam is now taxed at 38 percent, a staggering number for a country that had some of the world’s cheapest prices at the pump two years ago.
The Vietnamese used to enjoy some of the world’s biggest petrol subsidies but all that started to change when the government began incrementally adding taxes and fees.
Based on the current tax policy, a liter of A92 gasoline sells for VND15,700 (90 U.S. cents); VND5,900 (33 cents) of that goes back to the state in taxes and fees.
It includes VND1,700 (10 cents) for import tax, VND1,200 (7 cents) for value added tax, VND1,000 (6 cents) for special consumption tax, another 6 cents for a ‘traffic fee’ and the remaining 4 cents for a ‘refund’ to the government for previous fuel allowances.
Thai Van Chung, vice head of the transport association of Ho Chi Minh City, said Wednesday he has often asked the government to cut the taxes. But so far those calls have fallen on deaf ears.
With fuel making up 45 percent of transportation costs fee, consumers are the ones left holding the bag as increased fuel prices affect all other commodity prices.
Within the last six months, Vietnam has increased retail fuel prices six times, with the latest spike coming in on August 30.
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