The increase in fuel retail prices February 25 will likely push the consumer prices up by 0.4 per cent-0.5 per cent next month, according to a calculation from the Ministry of Finance and Ministry of Industrial and Trade.
Despite the fast rising consumer price index, which is estimated at nearly 6 per cent in the first two months, the Ministry of Finance still has to raise gasoline prices, an adjustment with market mechanism, said Finance Minister Vu Van Ninh.
“If not adjusting up the oil retail prices, the State will have to continue subsidizing for trading companies.”
Before raising oil prices Monday, ministries and sectors have discussions, mentioning an acceptation of a new oil price level, but maintaining the economic growth as the number one goal, Ninh said.
Deputy Minister of Industry and Trade Nguyen Cam Tu, said retail prices for fuels in the world have increased by 10 per cent, so the 9 per cent-10 per cent increase of local oil prices is reasonable.
In fact, companies raise gasoline prices by VND1,500-VND14,500 a liter, surpassing 1.5 per cent compared with the prediction of two ministries, Tu said.
The oil price hike will have greatest impacts on transport, fishing and CPI, two ministries calculated.
Ninh said the Finance Ministry has to spend VND11 trillion a year to subsidize oil trading companies.
In stead of subsidization, Vietnam will now spend money to help the poor people, regions and remote areas, he said. (Dantri)
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