Gasoline price drops after six consecutive hikes

The gasoline price in Vietnam reduced by more than VND600 (2.6 U.S. cents) a liter from 3 p.m. Monday, after six rises in a row in the year to date.

The price of RON 95 and E5 RON92 gasoline reduced by VND630-650 to respectively VND29,190 ($1.28) and VND28,330 a liter, while diesel oil decreased by more than VND1,630 to VND23,630.

The world’s average gasoline and diesel oil prices have decreased in the past 10 days, according to the Ministry of Industry and Trade (MoIT). But the global crude oil price increased again over the past few days.

The MoIT and the Ministry of Finance said they defined the price reductions based on global market moves and the need to ease pressure on the country’s gasoline price stability fund.

The National Assembly Standing Committee is scheduled to discuss the government’s proposal on March 23 to halve the environmental protection tax on gasoline. If approved, the reduction will come into force from April 1.

Prof. Nguyen Mai, former Vice Chairman of the State Committee for Cooperation and Investment (now the Ministry of Planning and Investment), said the government should keep gasoline prices at VND22-23,000 per liter from now to the end of June, so that the Covid-stricken transportation sector could rebound and the economy would not be distressed by transportation disruptions.

“The budget loss due to gasoline price reductions could be offset by exporter Petrovietnam’s surplus income and a recovering transportation sector. Otherwise, there might be an economic crisis deprived from oil prices," said Mai, now Chairman of Vietnam Association of Foreign Invested Enterprises (VAFIE).