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The Ministries of Finance and Industry and Trade this organised a
press conference, explaining why the world’s fuel prices have been
continuously decreasing but domestic prices remaining the same.
 Deputy Minister of Finance Tran Van Hieu said at the press conference that in the last 14 days, the world’s prices have dropped by 0.8-8.6 percent over the average price in June. However, the biggest price decreases have been seen with crude oil, while no considerable price decrease has been seen with finished products. A92 petrol is now trading at $69.71 per barrel in Singapore, kerosene at $71.64 per barrel, diesel $71.33 and crude oil at $63.79.
According to the two ministries, with such import prices and domestic sale prices, petrol importers are incurring the loss of 179 dong after tax and other expenses for every litre of petrol sold. Meanwhile, they are earning the profit of 136-750 per litre of diesel and kerosene sold. The products provided by Dung Quat Oil Refinery meet 10 percent of the Vietnam market. Most fuel is imported.
Deputy Minister Hieu said that though the petroleum pricing has been going in accordance with the market rules since July 1, 2007, enterprises still have to fulfill the task of stabilising the petrol prices as per request of the Government. This led to the losses of 4,040 billion dong in 2007 and 2008. The Ministry of Finance lent 4,038 billion dong to enterprises, and to date, the enterprises have just paid back 38 percent of the sum of money to the state budget.
Regarding the amendment of Decree 55 on regulating the petroleum market, Hieu said that concerned agencies are considering giving businesses more power in defining retail prices. “The decree will be amended to make it more suitable to Vietnam’s conditions, while we should not expect that prices will be regulated under the mode being applied in the US or UK, as we still are relying on imports,” Hieu said.
PetrolWorld 150709
Editors Note: Vietnam Currency - Dong 17,800.00 = us1$
Retail prices of petroleum :
A95 Fuel 14,700 dong
A92 Fuel 14,200 dong
Kerosene 13,650 dong
diesel 12,100 dong
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