Vietnam: For the first time, did the price of petro and oil across the country decrease by more than VND 400 per liter of petro after 07 consecutive price increases?
How is the petroleum price stabilization fund implemented?
In the face of developments in world gasoline and oil prices, on July 1, 2022, the Ministry of Industry and Trade of Vietnam issued Official Letter 3742/BCT-TTTN 2022 guiding the implementation of the petrol price stabilization fund as follows:
“In the face of the recent developments in world petroleum product prices and the implementation of petrol and oil price management according to the market mechanism under the management of the State, the Ministry of Industry and Trade and the Ministry of Finance of Vietnam decided:
1. Petroleum Price Stabilization Fund
1.1. Contribution to petrol price stabilization fund
- E5RON92 gasoline: VND 100/liter;
- RON95 gasoline: VND 0/liter;
- Diesel oil: VND 0/liter;
- Kerosene: VND 300/Iiter;
- Mazut oil: VND 800/kg.
1.2. Expenses for using the Petroleum Price Stabilization Fund
- E5RON92 gasoline: VND 0/liter;
- RON95 gasoline: VND 0/liter;
- Diesel oil: VND 0/liter;
- Kerosene: VND 0/Iiter;
- Mazut oil: VND 0/kg.”
According to the above regulations, the contribution to petroleum price stabilization fund will be E5RON92 gasoline at VND 100/liter, RON95 gasoline at VND 0/liter, diesel oil at VND 0/liter, kerosene at 300 VND/liter and mazut oil at 800 VND. /kg. Meanwhile, the spending level for using the petrol price stabilization fund of mazut oil is VND 0/kg, kerosene is VND 0/liter, diesel oil is VND 0/liter, E5RON92 gasoline is VND 0/liter and RON95 petrol is VND 0/liter.
Vietnam: For the first time, did the price of petro and oil across the country decrease by more than VND 400 per liter of petro after 07 consecutive price increases? (Image from the internet)
What is the price of petrol and oil after implementing the petroleum price stabilization fund?
According to the instructions in Official Letter 3742/BCT-TTTN 2022 of Vietnam, the price of petrol and oil is regulated as follows:
“After making the contribution and expenditure for the use of the Petroleum Price Stabilization Fund in Section 1 above, the price of popular consumer petroleum products on the market is not higher than the following price:
- E5RON92 gasoline: not higher than VND 30,891/liter;
- RON95-III gasoline: not higher than VND 32,763/liter;
- 0.05S diesel oil: not higher than VND 29,615/liter;
- Kerosene: not higher than VND 28,353 /Iiter;
- Oil 180CST 3.5S: not higher than VND 19,722 /kg.”
According to the above regulations, the maximum price of E5RON92 gasoline is VND 30,891/liter, the maximum price of RON95-III gasoline is VND 32,763/liter, the maximum price of diesel oil is VND 29,615/liter, the maximum price of kerosene is VND 28,353/liter and the maximum price of 180CST 3.5S fuel oil is VND 19,722/liter. Thus, the price of E5RON92 gasoline has decreased by more than 400 VND compared to the previous period.
From 3:00 pm on July 1, 2022, will the new prices of petrol and oil begin to be applied?
According to the guidance in Official Letter 3742/BCT-TTTN 2022 of Vietnam, the time for applying the above prices of petrol and oil is as follows:
“3. Execution time
- Contribution and expenditure for the use of the Petroleum Price Stabilization Fund for petroleum products: Applied from 15:00 on July 1, 2022.
- Adjustment of prices of petrol and oil products: shall be regulated by petrol wholesalers and petrol and oil distributors but not earlier than 15:00 on July 1, 2022.
- From 3:00 p.m. on July 1, 2022, which is the time when the Ministry of Industry and Trade announces the base price of the period announced in this Official Letter until before the date the Ministry of Industry and Trade announces the base price of the next period, the adjustment selling prices of petroleum products shall be decided by the main petrol and oil traders and petrol and oil distributors in accordance with the provisions of Decree No. 95/2021/ND-CP, Circular No. 17/2001/ TT-BCT, Circular No. 103/2001/TT-BTC, Circular No. 104/2021/TT-BTC.”
According to the above regulations, the contribution and use of the petrol and oil price stabilization fund will be applied from 3:00 p.m. on July 1, 2022. Adjustment of prices of petrol and oil products is prescribed by the main petrol traders and petrol distributors, but it’s not earlier than 15:00 on July 1, 2022. From 3:00 p.m. on July 1, 2022, which is the time when the Ministry of Industry and Trade of Vietnam announces the base price of the period published in this Official Letter until the date the Ministry of Industry and Trade announces the base price of the next period, the adjustment of prices of petrol and oil products shall be decided by the main petrol and oil traders and petrol distributors in accordance with the provisions of Decree 95/2021/ND-CP, Circular 17/2021/TT-BCT, Circular 103/2021/TT-BTC, Circular 104/2021/TT-BTC.
View the full Official Letter: Here
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