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Distributors seek higher retail price for petrol
Leading petrol distributors are urging the Ministries of Finance and Industry and Trade to authorize a higher retail petrol price peg vis-à-vis world crude oil prices. They argue that at the current world oil price, they are losing VND 1,000 per litre of petrol sold.
The distributors have not revealed the price they suggested, but note that petrol prices have remained high on the Singapore market at about US$ 64 per barrel of A92 petrol for the last 20 days, rendering a rise in retail prices here inevitible.
The Ministry of Finance has confirmed that major petrol distributors have asked permission to raise prices and it is accepted that they are incurring losses. However, the ministry thinks that it is still necessary to observe developments in the world oil market and consider the readiless of consumers to bear a higher price.
The retail petrol price has increased twice since the beginning of April, lifting the retail price of A92 petrol in Vietnam to 12,000 dong per liter. The latest price rise went into effect when A92 petrol reached the US$ 65 per barrel threshold ten days ago.
A recently published Ministry of Finance document establishes a formula for calculating tax on imported petrol and oil products pegged to the world price. With the formula, consumers can calculate if petrol distributors are applying reasonable prices.
Meanwhile, world crude oil prices have fallen sharply from 2008 highs and after dipping as far as $US 46/barrel were slighly less than US$49 on April 21.
vietnamnet, vneconomy
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