Friday,  Aug 17, 2018,18:06 (GMT+7) 0 0
Fuel price stabilization fund has over VND5.1 trillion
Minh Tam
Friday,  Feb 9, 2018,21:15 (GMT+7)

Fuel price stabilization fund has over VND5.1 trillion

Minh Tam

HCMC – The fuel price stabilization fund had grown to a record high of over VND5.1 trillion (US$225 million) as of late 2017, according to statistics of the Finance Ministry.

The amounts of the fund at Vietnam National Petroleum Group (Petrolimex), PetroVietnam Oil Corporation (PV Oil), and Saigon Petro Co Ltd were VND3,040 billion, VND434 billion, and VND345 billion respectively.

Data also shows the fund has been swelling as the demand for fuels is growing. In the last quarter alone, consumers paid a total of over VND1.43 trillion to the fund.

Under current rules, fuel traders will extract VND300 for each liter of fuels sold to consumers to create the fund, which will be tapped to stabilize fuel prices upon any sharp changes on the market.

Many experts said the fund has adverse effects on the local market. While fuel wholesalers are allowed to tap the fund in order to offset the differential between the new base and retail prices, local residents still have to inject money into the fund at VND300 a liter, except for E5-A92 bio-fuel.

However, traders of the bio-fuel are still allowed to tap the fund, resulting in a price difference of roughly VND2,000 a liter compared with A95 gasoline. This also creates inequality among fuel companies.

If they sell much bio-fuel, their price stabilization fund will fall sharply. This will not encourage bio-fuel sales and will not be in line with the Government’s spirit as well.

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