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Retail fuel prices may change
The government is mulling over a decree to change fuel trading that will peg retail sales to world prices.
The new regulation to be submitted to the national government, and compiled by the Ministry of Industry and Trade, will see price reductions if the world price goes down by over three percent.
Prices can also be lifted if hikes occur of over 3 percent.
Existing fuel trading decree 55 states that all (11) domestic petrol traders are allowed to fix prices but changes must be approved by the government.
At present it is the government and not the traders which decide prices on the domestic retail market.
Another modification in the draft decree relates to the area size of filling stations. Area for parking must now be at least 20 meters in width and 10 meters from the pavement to fuel pumping machines.
The ministry estimates hundreds of filling stations in Ho Chi Minh City will be closed due to this new requirement.
The new decree came about after complaints from the public that retail fuel prices in Vietnam have not tracked down to meet slumping world crude prices.
The Vietnamese retail market has been higher than in the U.S. over the past two years.
From November 2007 till now, Vietnam’s prices were cheaper than those in the U.S. during a short period of three months from April to July last year.
vietnews
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