Ministry continues to consider adjusting costs of petrol

Hanoi (VNS/VNA) - The Ministry of Finance (MoF) is taking steps to stabilise domestic gasoline prices and supply while removing difficulties for petroleum traders, said Nguyen Tien Minh, Director of the MoF’s Price Management Department.

The Fuel Price Stabilisation Fund has been used consistently for the purpose of stabilising petrol prices in line with the law, according to the department. The fund has been effectively used to stabilise petrol prices to help curb inflation and stabilise the macro economy.

Petroleum is an essential commodity, and it has a strong impact on production, business activity and people's lives. High gasoline prices and the shortage of petroleum supply put great pressure on the business costs of enterprises as well as people's spending. Vietnam must also contend with global fluctuations in fuel prices, which affect domestic gasoline prices and create unpredictable developments.

From April 1, 2022 to the end of December 31, 2022, there will be a 50% cut in the environmental protection tax on gasoline (excluding ethanol), diesel fuel, mazut, lubricants and grease and a 70% cut in the environmental protection 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 FTAs with Vietnam so they only had to bear import tax rates under the FTA which were lower than the MFN import tax rate. The reduction will contribute to diversifying supply sources and avoiding heavy dependence on a few markets amid the uncertainty in global supply chains.

The cost of transporting gasoline from abroad to Vietnam has been adjusted three times this year, and the most recent adjustment was on November 8, 2022.

In the time to come, under the Prime Minister’s Official Dispatch 1085/CT-TTg dated November 11, 2022, the Ministry of Finance will work with the Ministry of Trade and Industry and key petrol businesses to review and calculate petroleum-related expenses and consider price adjustments in accordance with market developments.

The Finance Ministry has collected data from petroleum traders and worked with the Ministry of Trade and Industry to consider price adjustments in accordance with regulations.

The Finance Ministry and relevant ministries and bodies will be proactive and strictly implement solutions enacted under the Prime Minister’s Official Dispatch 1085/CT-TTg to ensure that there will be no gasoline shortages nor disruption of supplies, at any cost, so as to meet the demands of the whole society, according to Minh.

The Finance Ministry has also asked key petrol traders to be more proactive in seeking supply sources of fuel and negotiating with foreign sellers to get the best prices.

In addition, the Finance Ministry will continue to use the fund in a flexible manner in relation to global fuel price developments.

On November 21, the retail prices of petrol and oil dropped in the latest adjustment by the Ministries of Industry and Trade, and Finance after four consecutive hikes. However, the reduction rates were low at between 40-80 VND per litre./.