Illustrative image (Photo: VNA) The Fuel Price Stabilisation Fund has been used consistently forthe purpose of stabilising petrol prices in line with the law, according to thedepartment. The fund has been effectively used to stabilise petrol prices tohelp curb inflation and stabilise the macro economy.
Petroleum is an essential commodity, and it has a strong impact onproduction, business activity and people's lives. High gasoline prices and theshortage of petroleum supply put great pressure on the business costs ofenterprises as well as people's spending. Vietnam must also contend with globalfluctuations in fuel prices, which affect domestic gasoline prices and createunpredictable developments.
From April 1, 2022 to the end of December 31, 2022, there will bea 50% cut in the environmental protection tax on gasoline (excluding ethanol),diesel fuel, mazut, lubricants and grease and a 70% cut in the environmentalprotection tax on kerosene.
The Government has also halved the most-favored-nation (MFN)import tariff on unleaded gasoline to 10% from 20%.
Minh said gasoline products were imported from countries with FTAswith Vietnam so they only had to bear import tax rates under the FTA which werelower than the MFN import tax rate. The reduction will contribute todiversifying supply sources and avoiding heavy dependence on a few markets amidthe uncertainty in global supply chains.
The cost of transporting gasoline from abroad to Vietnam has beenadjusted three times this year, and the most recent adjustment was on November8, 2022.
In the time to come, under the Prime Minister’s Official Dispatch1085/CT-TTg dated November 11, 2022, the Ministry of Finance will work with theMinistry of Trade and Industry and key petrol businesses to review andcalculate petroleum-related expenses and consider price adjustments inaccordance with market developments.
The Finance Ministry has collected data from petroleum traders andworked with the Ministry of Trade and Industry to consider price adjustments inaccordance with regulations.
The Finance Ministry and relevant ministries and bodies will beproactive and strictly implement solutions enacted under the Prime Minister’sOfficial Dispatch 1085/CT-TTg to ensure that there will be no gasolineshortages nor disruption of supplies, at any cost, so as to meet the demands ofthe whole society, according to Minh.
The Finance Ministry has also asked key petrol traders to be moreproactive in seeking supply sources of fuel and negotiating with foreignsellers to get the best prices.
In addition, the Finance Ministry will continue to use the fund ina flexible manner in relation to global fuel price developments.
On November 21, the retail prices of petrol and oil dropped in thelatest adjustment by the Ministries of Industry and Trade, and Finance afterfour consecutive hikes. However, the reduction rates were low at between 40-80 VNDper litre./.
VNA
