The recent rise in petrol prices will drive the consumer price index (CPI) up by 0.1 percent, said a Ministry of Finance official at a regular press briefing in Hanoi on July 19.

Nguyen Anh Tuan, Deputy Director of the ministry’s Price Management Department, said the basic cost of petrol before the price adjustment was 720-988 dong per litre higher than the selling price.

Petrol suppliers should have increased the price by 900 VND per litre to offset their losses, he said, adding that in this case, a sharp rise in CPI is inevitable, tremendously affecting production.

To avoid this, the Ministry of Finance has considered cutting oil and petrol companies’ profits by two thirds, from 300 VND to 100 VND per litre.

In addition, each 100 VND of every litre sold was sourced from the petrol price stabilisation fund in effort to reduce the difference.

Despite the ministry’s efforts, the real cost of petrol remains 426-470 VND per litre more than the price at the pumps.

Earlier, on July 17, the price of RON 92 increased by 460 VND per litre, setting a new record of 24,570 VND per litre.-VNA