The import tariff on liquefied petroleum gas (LPG) was Friday decreased to 2 percent from 5 percent.
A Finance Ministry circular to this effect aims to stabilize the gas market after the Vietnam Gas Association said retail prices of cooking gas have risen sharply to match an increase in global prices and asked that import taxes to be lowered.
Vietnam currently imports 60 percent of its LPG demand. The remaining 40 percent is supplied by the Dung Quat refinery in the central province of Quang Ngai and the Dinh Co plant in the southern province of Ba Ria Vung Tau.
Immediately after the Ministry of Finance issued the circular, Saigon Petro cut its retail cooking gas prices.
A 12-kilo LPG cylinder of LPG costs VND322,000 (US$17) starting December 18, down VND8,000. Other cooking gas suppliers like Petrolimex Saigon and Vinagas, said they would also lower their retail prices the same day.