HANOI: The domestic retail price of petroleum increased by VNĐ646 to reach VNĐ15,586 (69 US cents) per litre on May 5, the Ministry of Industry and Trade (MoIT) said. The price of E5 RON 92 biofuel also rose by VNĐ634 to VNĐ15,076 per litre. The prices of diesel and kerosene went up by VNĐ650 and VNĐ550 to VNĐ11,023 and VNĐ9,455 per litre, respectively. The price of mazut was VNĐ7,860 per kg, an increase of VNĐ323.
The MoIT and the Ministry of Finance also decided to keep the use of the price stabilisation fund for petroleum unchanged at VNĐ639 per litre. Usage of the fund for E5 RON 92 biofuel remained at VNĐ672 per litre, while diesel was VNĐ846 per litre, kerosene was VNĐ1,029 per litre and mazut was VNĐ323 per kg.
The retail petrol price in Singapore – the main petrol exporter for Việt Nam – was $54.08 per barrel on May 3. This was $4 per barrel higher than the previous price adjustment on April 20. The local retail price of petrol has gone up twice since the beginning of March. The director of the Ministry of Finance’s Price Management Department, Nguyễn Anh Tuấn, said the calculation of petroleum import taxes based on the weighted average of the tariffs had helped reduce the shortcomings of having different import taxes due to commitments made as part of international integration agreements.
Tuan also said petrol management has ensured transparency and followed changes in the world market, with consumers now able to supervise price adjustments. The Việt Nam Petroleum Association (VINPA) has, however, submitted a proposal to Prime Minister Nguyễn Xuân Phúc to lower import taxes to 10 per cent for petrol and zero per cent for other products.
VINPA said there were some shortcomings in the calculations, as there would always be a difference between the actual import taxes and the weighted average of the tariffs. In addition, the calculation also directly affected the Dung Quất Oil Refinery, the association said. The tax reduction could also reduce the State budget’s collection, which is why the association suggested increasing domestic taxes, including special consumption and environmental protection taxes. The current import taxes were 18.35 per cent for petrol, 2.32 per cent for diesel and 0 per cent for mazut, according to the calculation of petroleum import tax based on the weighted average of the tariffs.
