Vietnam gasoline price hiked for second time after 9 consecutive drops

Retail gasoline prices in Vietnam increased by VND200-340 ($0.01) a liter on Friday, the second hike after nine consecutive drops since late April.

RON 95-III gasoline went up to VND22,340 ($0.9) per liter, while E5 RON 92 hit VND21,490 ($0.87).

Diesel oil climbed by VND600 to VND24,780 ($1). Kerosene declined by VND840 to VND23,660 ($0.96) a liter.

The new diesel oil price is VND2,440 ($0.09) higher than that for RON 95-III.

As for Friday's price cuts, Vietnamese authorities continued to avoid the Fuel Price Stabilization Fund. Instead, they decreased provisions for the fund, VND400 for RON 95-III gasoline, and VND200 for each liter of E5 RON 92.

Retail gasoline prices in the country have witnessed 28 adjustment in the year to date, including 15 hikes and 13 reductions.

The National Assembly on July 6 adopted lowered environmental taxes on fuel, applied from July 11 till the year-end, amid globally increasing oil prices that put pressure on inflation.

The tax cuts - the second this year after the first in April - are expected to help the Vietnamese economy better navigate a global situation in which oil prices have soared.

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 curb inflation at 4% this year.