Tuesday,  May 21, 2019,10:51 (GMT+7) 0 0
Fuel price adjustment not in line with world price fall
By Tam An
Wednesday,  Nov 21, 2018,18:23 (GMT+7)

Fuel price adjustment not in line with world price fall

By Tam An

A woman is waiting for her motorbike to be refilled at a gas station - PHOTO: TAM AN

HCMC – Local petrol and fuel prices have dropped sharply today, November 21, by some VND1,000 per liter, according to a statement jointly issued by the ministries of Industry and Trade and Finance. However, the reduced prices of RON95 gasoline and diesel oil were not in line with the world’s fuel price fall.

In particular, the RON95 gasoline is now sold at a maximum VND19,972 per liter, down VND1,093 per liter versus that of the previous price adjustment.

However, the base price of RON95 fuel during a 15-day period (November 6-21) was VND19,239 per liter, as published by competent agencies. This means the retail price after the reduction is still higher than the import price.

The price gap was attributed to the extraction of VND950 for each liter of RON95 gasoline sold to customers to replenish the national price stabilization fund, as required by the competent agencies, which is VND650 higher than the current figure of VND300 per liter stipulated in prevailing regulations.

Diesel oil encountered the same problem.

The import price of diesel oil during the 15-day period fell sharply to VND17,417 per liter. However, its current ceiling price, after being cut by VND907, is VND17,637 per liter. Local traders are allowed to take VND500 for every liter of diesel oil sold to customers to add to the fund, higher than the regulated rate of VND300.

The competent agencies have the right to flexibly regulate the extraction rates for adding to the fund. The  measure applied to RON95 gasoline and diesel oil was aimed at restoring the fund after a long period of depletion due to its use in stabilizing local fuel prices, a representative fuel trader in the south told the Saigon Times.

Regarding other fuel types, the retail price of E5 RON92 was revised down by VND973 to VND18,627 per liter, while kerosene oil is priced at VND16,242 per liter, down VND844. Also, heavy fuel oil 35.S edged down by VND508 to VND15,186 per kilogram.

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