Vietnamese Trade Minister Truong Dinh Tuyen will answer public queries on the State’s surrender of gasoline price controls on April 20, one of the most concerning recent economic events.
The issue of gasoline prices has become a hot topic since the government passed Decree 55 allowing oil traders to fix retail prices.
Oil prices have, until now, been managed and subsidized by the government.
However, with its international commitments and its failure to mirror global oil price fluctuations, the government has to stop subsidies, local media said.
Since the beginning of this year, the State Treasury has paid a large sum of money to subsidize sales of loss-making petrol retailing.
Petrolimex, which holds some 60 per cent of the Vietnamese petroleum market, said it was losing around VND35 billion ($2.2 million) per day as a result of the gap between import and domestic prices.
Experts warned ordinary people would be hit by the government’s decision since gasoline fuels 17 million motorbikes and nearly one million automobiles, in addition to industrial facilities.
Without any refineries, Vietnam is totally reliant on imported petroleum.
The communist-ruled nation is forecast to import 13.2 million metric tons of petroleum products this year, up nearly 20 per cent on year.
Vietnam is building its first refinery in Dung Quat, central Quang Ngai province. It hopes to call investment for more refineries soon. (VTC, Vietnam Panorama)
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