Retail petrol prices rose 1,000 VND (0.06 USD) per litre on August 30, with A92 petrol increasing to 15,700 VND (0.84 USD) per litre and diesel fuel to 13,100 VND (0.74 USD) – marking the second hike in petrol prices in August alone and the seventh since early this year.

The ministries of Finance and of Industry and Trade approved the increase, saying that increasing global oil prices in recent days had forced domestic costs higher. The ministries also forecast demand for fuel to increase now that the global economy was beginning to show signs or recovery.

Oil prices on world markets in the 20 days during August 9-28 had increased 2.3 to 4.3 percent over the previous 20-day period, they said, claiming that, without a price hike, petrol dealers would have suffered losses of 1,190 VND per litre of petrol and 1,993 VND per litre of diesel.

Estimates of losses were computed against import petroleum prices in Singapore within the previous 20 days, plus taxes and fees, commissions, transportation and other costs to dealers.

Compared with neighbouring countries such as China, Laos and Cambodia, the new prices would still be 659-6,782 VND per litre lower for petrol and 1,101 – 3,981 VND per litre lower for diesel, the ministries said.

The ministries have also decided to temporarily discontinue the Price Stabilisation Fund which was set up last March with a view to stablising domestic petrol prices in times of global price fluctuations.

The ministries also set prices 850 VND higher for kerosene, which rises to 14,000 VND (0.79 USD) per litre, and 300 VND higher for fuel oil, which rises to 11,800 VND (0.66 USD) per kilo. The finance ministry also cut the import tax on fuel oil from 25 percent to 20 percent./.