Gasoline prices down, close to August 2021 levels

Gasoline prices in Vietnam were slashed by more than VND1,000 per liter on Monday, bringing the price of RON 95-III to almost VND21,000, equal to the price in August last year.

RON 95-III gasoline went down to VND21,440 ($0.9) per liter, while E5 RON 92 was VND20,730 ($0.87). The domestic price of RON 95-III has decreased for the ninth time over the past 2.5 months.

The price of oil products followed suit on Monday. Diesel oil decreased by VND330 to VN22,200 ($0.93) per liter, while kerosene fell by VND760 to VND21,680 ($0.91).

Notably, the new diesel oil price is VND760 ($0.032) higher than the RON 95-III gasoline price. The current diesel price is equivalent to that of March.

As for Monday’s price cuts, Vietnamese authorities continued not to use the Fuel Price Stabilization Fund. Instead, they increased the provisions for the fund, from VND450 per liter to VND600 for RON 95-III gasoline, but did not change the provision of VND451 for each liter of E5 RON 92.

The consumer price index (CPI) in September rose 4.01% from December last year, the GSO said. Inflation in the nine-month period was 1.88%.

The country is facing rising inflation pressure following the U.S. Federal Reserve’s interest rate hike on September 21. As a result, the State Bank of Vietnam increased its regulatory interest rates on September 23. The government has been seeking to limit inflation to 4% this year.