Retail petrol prices expected to fall further

The retail selling price of petroleum will likely be reduced in the next few days, Deputy Industry and Trade Minister Do Thang Hai announced at a press conference on November 3.

The domestic petrol price was previously reduced eight times this year by a cumulative amount of 3,300 VND (15 US cents) per litre. The latest decrease which took place on October 23 brought down the price to 22,340 VND (1.1 USD) per litre.

Fuel traders are allowed to unilaterally raise prices if the rate of increase is below three percent of current prices, but they must report the increase to the ministries of Finance and Industry and Trade. 

If the increase is between three to seven percent, petrol wholesalers are required to submit documents on price fluctuations of elements which make up petrol prices, as well as anticipated increases, to the two ministries for review and approval. 

Fuel price increases exceeding seven percent, or increases with a significant impact on national socio-economic development and the people's living standards, must be reported to the Prime Minister for review and approval. 

The Ministry of Industry and Trade (MoIT) is responsible for providing updates on world fuel prices, including base and retail prices, and the use of the fuel price valorisation fund on its website. 

"Based on the world petrol market, the two ministries will reduce the retail price as soon as possible to ensure benefits to people and businesses," the deputy minister said. 

Petroleum traders said they made profits of 1,087 VND per litre from the downward trend in the world market. 

The country so far has 19 petrol traders, and the number will be increased to supplement petrol supply and increase competitiveness.