Petrol retail prices were reduced, the ministries of Industry and Trade and Finance announced.

The retail price of RON 95-III was reduced by VND538 to VND17,600 per litre (US$0.75) from VND18,140 per litre at 12pm on January 1.

The price of E5 fuel RON 92 also dropped slightly, by VND515 from VND16,780 per litre to VND16,270 per litre. Prices of diesel oil and kerosene were lowered by VND1,092 and VND818 per litre to VND15,050 per litre and VND14,180 per litre, respectively.

This was the first decrease of petrol retail prices in 2019, coinciding with the adjustment of environmental protection taxes.

The environmental tax on petrol was increased from VND3,000 to VND4,000 per litre as of the beginning of the year.

The two ministries also decided to change the use of subsidies from the petrol price stabilisation fund.

Subsidies for E5 RON 92 and RON 95 were VND500 and VND1,000 per litre, respectively. For diesel and kerosene, the subsidies were VND800 and VND700 per litre. The subsidy for mazut was set at VND500 per kilo.

According to the ministries, in the 15 days before January 1, the global price of RON 92 – which is used to produce biofuel E5 – averaged $53.35 per barrel and RON95 was at $55.48 per barrel.

The price of ethanol E100, which is used to calculate the price of E5 RON 92 after the elimination of petrol RON 92, stood at VND14,778 per litre without value added tax.

According to the Viet Nam National Petroleum Group (Petrolimex), its petrol price stabilisation fund was VND1.91 trillion ($82.6 million) as of January 1, up VND230 billion from the previous petrol price adjustment on December 21, 2018.

Earlier, Deputy Prime Minister Vuong Dinh Hue asked the ministries to use the price stabilisation fund to avoid increases in the beginning of this year. — VNS