Photo: Ngoc Thang
Just one day after the government was allowed to increase fuel’s environment tax threefold, the retail prices of gasoline and oil were raised by as much as 10.2 percent on Wednesday.
It was the first break in the domestic fuel prices’ downtrend that started in July last year with 13 cuts.
The country’s most popular gasoline grade 92-octane (92 RON) is now sold at around VND17,286 (nearly 80 US cents) per liter, up 10.2 percent, according to the latest announcement from the industry ministry and the finance ministry.
Another grade of gasoline, 95 RON, saw a similar hike, while diesel fuel is newly priced at about VND15,883 (73 cents) per liter – a rise of 4.6 percent.
The agencies also adjusted kerosene’s price by 5.8 percent to VND16.323 (75 cents) per liter, and mazut by 7.5 percent to VND12.767 (58 cents) per kilogram now.
On Tuesday, the National Assembly’s Standing Committee passed the government’s plan to raise environment tax rates for fuel products this May 1.
Under the plan, gasoline and jet fuel are now subjected to the rate of VND3,000, or 13 US cents, while diesel fuel VND1,500 per liter, and kerosene VND900 per liter.
According to the government, the tax hikes are needed to mitigate losses resulted from the reductions in fuel’s import duties that Vietnam is obliged to carry out by its trade agreements with ASEAN, China, and South Korea.
Fuel import taxes are due to be down from 35 to 20 percent between 2015 and 2017.