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Fuel tax cut to limit price hike impacts (03/05)
06/08/2010 - 79 Lượt xem
The Ministry of Finance has cut import tariffs on gasoline from 10 to 5 per cent in a bid to limit any rise in pump prices as the Government’s new energy policy takes effect.
Starting yesterday, retailers for the first time will determine prices on octane 95 and 93 gasoline. The move is part of the Government’s April 6 decree to slowly remove fuel subsidies over the next two years.
The decision to reduce import tariffs, which took effect last Saturday, will help curb any short term price hikes, says the ministry, though companies are still reporting VND300-VND500 losses for every litre of petrol sold.
Trade Minister Truong Dinh Tuyen vowed during an online press conference two weeks ago that petrol prices would be kept under VND12,000 a litre this year.
Petrol price in several neighbouring countries has risen to VND14,000-15,000 a litre, but if applied to Viet Nam consumers would find it difficult to afford, said Tuyen.
Hence, the ministry is willing to cut import tariffs to zero if global crude prices increase unexpectedly.
If companies continue to report losses after tariffs are reduced to nothing, the Government may even re-institute fuel subsidies to keep pump prices low, said Tuyen.
Officials have established a vague time line for liberalising fuel prices - yesterday, companies took full control of octane 95 and 93, later this year they will determine the cost of heavy oil, and in 2008 diesel.
The exact dates for removing heavy oil and diesel subsidies will be decided by the prime minister, said Tuyen. The Government has also created a special group to monitor prices and police the market.
World oil prices fell on Monday on profit-taking after sharp gains last week following news of a possible terrorist plot in Saudi Arabia, said analysts.
In London, Brent crude for June delivery fell US$0.52 to $67.89 a barrel on Monday, while on the New York Mercantile Exchange light sweet crude slid $0.55 to $65.91 a barrel.
Source: VietnamNews
