Diesel prices in Vietnam on Thursday fell 5.8% to VND31,040 (US$1.18) per liter, the lowest since March 20.
Gasoline prices, however, inched up. The most popular fuel RON95 gained 0.93% to VND23,760. Biofuel E5 RON92 added 1.12% to VND22,590.
Globally prices of the world’s two key crude oil benchmarks declined by 0.3% early Thursday. Brent crude traded at $94.6 per barrel, while U.S. WTI crude dropped to $90.9. Prices eased as investors anticipated the possibility of a peace agreement between the United States and Iran.
Vietnam continued to subsidy fuel in this adjustment at VND400 per liter for diesel and VND800 per liter or kilogram for gasoline and mazut.
The government has allocated an additional VND8 trillion from the state budget as an advance for the subsidy fund.
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A worker operates a fuel dispenser at a station in HCMC. Photo by VnExpress/Thanh Nguyen |
Lawmakers have approved tax waivers, including environmental protection tax, value-added tax and special consumption tax, on fuel from April 16 to June 30, to control inflation. These waivers are expected to reduce state revenue by an average of VND7.3 trillion per month.
However, the government described this as a “special fiscal measure applied in exceptional circumstances” to mitigate the impact of energy price fluctuations and contribute to maintaining macroeconomic stability and social security.
