The Ministry of Finance has cut import tax on gas from 5 percent to 2 percent to stabilise the domestic gas market.
The new tariff came into effect on Dec. 17 and gas retailers PV Gas, Petrolimex Gas, Sai Gon Petro Gas, Vinagas and Gia Dinh Gas immediately cut their retail price by 8,000 VND (0.38 USD) on 12kg canisters.
The move comes at the end of a year when the price of gas in Vietnam rose seven times so far this year. Before the cut, retail prices for canisters ranged from 330,000 VND (15.71 USD) to 360,000 VND (17.14 USD) depending on the brand.
The Vietnam Gas Association originally proposed the tax cut after rises in the world's gas price led to similar increases on the domestic market.
Gas world prices have risen about 200 USD to roughly 1,000 USD per tonne this month.
The gas association's chairman Nguyen Sy Thang said dependence on imports makes doing business difficult for gas traders. Without tax cuts, domestic gas prices will continue to rise.
The country currently imports roughly 60 percent of its total gas needs.
Thang also said that the import tax rate of 5 percent had been set by the Ministry of Finance when the world gas price was 200 USD per tonne but with prices now at 1,000 USD per tonne, the previous tax rate was too high.
Earlier this month, the country's largest gas provider PV Gas offered discounts of 5,000 VND on 12kg canisters to stabilise the domestic gas market. The price cut was made possible by domestic supply from the Dung Quat Oil Refinery./.
The new tariff came into effect on Dec. 17 and gas retailers PV Gas, Petrolimex Gas, Sai Gon Petro Gas, Vinagas and Gia Dinh Gas immediately cut their retail price by 8,000 VND (0.38 USD) on 12kg canisters.
The move comes at the end of a year when the price of gas in Vietnam rose seven times so far this year. Before the cut, retail prices for canisters ranged from 330,000 VND (15.71 USD) to 360,000 VND (17.14 USD) depending on the brand.
The Vietnam Gas Association originally proposed the tax cut after rises in the world's gas price led to similar increases on the domestic market.
Gas world prices have risen about 200 USD to roughly 1,000 USD per tonne this month.
The gas association's chairman Nguyen Sy Thang said dependence on imports makes doing business difficult for gas traders. Without tax cuts, domestic gas prices will continue to rise.
The country currently imports roughly 60 percent of its total gas needs.
Thang also said that the import tax rate of 5 percent had been set by the Ministry of Finance when the world gas price was 200 USD per tonne but with prices now at 1,000 USD per tonne, the previous tax rate was too high.
Earlier this month, the country's largest gas provider PV Gas offered discounts of 5,000 VND on 12kg canisters to stabilise the domestic gas market. The price cut was made possible by domestic supply from the Dung Quat Oil Refinery./.
