Vietnamese Prime Minister Nguyen Tan Dung adopted the cut on the retail price of petrol as a critical measure to calm down the soaring consumer price, the Government Office said after the extraordinary cabinet meeting on August 12.
“Ministries and branches must focus on resolutely instructing the expansion of production, the increase in export, the balance of of supply and demand and control of consumer price rise to stabilize the macro economy and ensure the people’s living,” the office quoted the PM as saying.
The Ministry of Finance said after the cabinet meeting that the petrol retail price is possibly effective from August 13.
The pump price of petrol may fall VND500 on every liter, the ministry said after turning down the proposal on tax rise on the distillated fuel from the 0 per cent to 5 per cent.
Currently, the petrol price is sold at VND11,400-12,000 a liter, depending on the octane grade.
Last week, the Ministry of Finance lowered import tariffs of 18 categories of imported commodities in a bid to control the consumer price rise, one of series of measures to keep the CPI under the GDP growth.
The consumer price index was up 6.19 per cent in the first seven months this year.
The Ministry of Industry and Trade said Vietnam will need 13.3 million tons of petroleum products to feed its energy demand in 2007, up over 20 per cent on year, including 4 million tons of petrol.
It bought 7.55 million tons worth US$4.1 billion in the first seven months this year, both up 12 per cent on year.
Nearly all petroleum products consumed in Vietnam are imported because the country lacks major refining facility. The first refinery, Dung Quat, is scheduled for operation in early 2009. (Local sources)
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