The Ministry of Finance (MoF) is taking steps to stabilize domestic gasoline prices and supply while removing difficulties for petroleum traders, said Nguyen Tien Minh, Director of the MoF’s Price Management Department.
The Ministry of Finance has just announced the balance of the petrol price stabilization fund by the end of the second quarter of the year to implement the principle of publicity and transparency in the administration of petrol and oil prices following Decree No.83 and Decree No.95 of the Government.
According to the Ministry of Industry and Trade, the global crude oil price on July 19 and 20 tended to rise, surpassing the level of US$100 a barrel. The price of WTI oil was $104.22 a barrel, and Brent oil was $107.05 a barrel in the morning trading session of July 20.
The ministries of Industry, and Trade, and Finance, on the afternoon of March 21, decided to request fuel enterprises to lower prices for all retail gasoline and oil products in the domestic market. However, consumers and businesses that directly use fuel assess that the reduction in gasoline prices in this adjustment is not as expected, although the global gasoline prices dropped sharply in the past week.
Retail gasoline prices in the domestic market continued to climb by more than VND500 per liter on the afternoon of March 1, the sixth consecutive increase and the fifth increase in a row in 2022. Currently, the selling prices of both RON 95 and E5 RON 92 gasoline are at historic highs.
After climbing for five consecutive times, the ministries of Industry and Trade and Finance, on November 25, decided to lower retail gasoline prices. However, the prices of RON95 and E5 RON92 gasoline remain at a high level.
Domestic retail prices of petrol and oil products were allowed to adjust to the new selling price, with an increase of more than VND1,400 per liter for gasoline and more than VND1,000 per liter for oil as of 4 p.m. on October 26. As the global oil prices have risen to the highest level in the past seven years, while the Fuel Price Stabilization Fund has almost been exhausted, the most feasible solution is to reduce taxes to share difficulties with consumers and businesses.
Rising global oil prices have been putting pressure on gasoline prices in the domestic market. According to the report of the General Statistics Office of Vietnam under the Ministry of Planning and Investment, an increase of 12.08 percent in the five-month domestic gasoline prices and 15.32 percent year-on-year in gas prices are one of the main reasons for the rise in the consumer price index (CPI) in the first five months of this year.
Due to new Covid-19 cases and unchanged global fuel prices, the ministries of Finance and Industry and Trade on July 28 decided to keep the price of RON95 gasoline unchanged, just slightly increase the prices of the remaining petroleum products.