Vietnam's largest fuel trader Petrolimex on Monday evening announced a 1.6 percent decrease in the retail prices of 92-RON gasoline, the most commonly used grade in the country, setting it at VND23,880 (US$1.13) per liter.
It made the price cut of VND390 after the Ministry of Finance asked domestic retailers to decrease their prices on the grade variety by at least VND387 per liter.
The ministry said the minimum decrease of VND387 equals the profit per liter sold by retailers, who are already subsidized with VND300 taken from a rainy day reserve.
The price of 92-RON gasoline has gone down by VND690 through two reductions since the all-time peak in July 17.
The ministry said international markets had seen strong increases in fuel prices in early September with political tension escalating in Syria, an oil producer in the Middle East, but average prices for the last 30 days reported a downward trend.
The price reductions aimed to help "curb the inflation" and "stabilize the macroeconomy."
Vietnam, whose oil producing capacity meets less than a third of local demand, aims to keep inflation at below 7 percent this year. But the World Bank has forecast that the rate could be at 8.8 percent.
Petrolimex also decreased prices of 95-RON by 1.57 percent to VND24,380, but it made no changes to dielsen, which retails at VND22,260-22,310, and kerosene, at VND22,020.
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