The retail price of petrol fell by VND1,198 to reach VND17,338 (77 US cents) per litre at 3pm on September 3. — Photo vnecomy

HA NOI (Biz Hub) — The retail price of petrol fell by VND1,198 to reach VND17,338 (77 US cents) per litre at 3pm on September 3, the Ministry of Industry and Trade (MOIT) said.

The price of biofuel E5 RON 92 also dipped by VND1,198 to reach VND16,843 (74 cents) per litre, while the price of diesel has come down by VND111 to reach VND13,310 (59 cents) per litre.

The price of kerosene dropped by VND123 per litre to VND12,286 (54 cents), while that of mazut fell by VND785 per kilo to VND9,351 (4 cents).

In addition, the MOIT and the Ministry of Finance said in a joint statement that they had decided to keep the petrol price stabilisation fund unchanged.

The ministry said the sharp decline was attributable to the plunging prices on the world market.

The world crude oil price has dropped continuously over the past 10 days to a six-year low, going from $50 to $38 per barrel on August 24 and rising to $46.28 per barrel on Wednesday.

Statistics from the MOIT show that petrol prices have fallen seven times so far this year, with a total reduction of VND5,588 (24 cent) per litre, along with a fourfold increase from VND5,040 per litre last year. The largest hike came on May 5, when the price jumped by VND1,950 per litre.

The tax on petrol for environment protection has been raised from VND1,000 to VND3,000 since May. However, the ministry said it would reduce import tax and committed to preventing the adjustment from affecting the petrol price.

A representative from a petrol trading company said the change in the foreign exchange rate of the State Bank of Viet Nam has also had a considerable effect on the price drop. However, they declined to reveal any specifics on the effect of forex changes on imported petrol.

A previous forecast said the petrol price could fall by VND1,000 to VND1,200 per litre. — VNS