A petrol station in Ha Noi. — Photo chinhphu.vn

Petrol retail prices were reduced again as of 3pm on Tuesday, marking the 8th consecutive decrease this year, the ministries of industry and trade and finance announced.

The retail price of RON 95-III was reduced by VND308 to VND11,631 per litre (US$0.49) while E5 fuel RON 92 dropped by VND401 to VND10,942 per litre.

The prices of diesel oil and kerosene were lowered by VND882 and VND674 per litre to VND9,941 per litre and VND7,965 per litre, respectively, while the price of mazut reduced by VND657 to VND8,670 per kilo.

The Ministry of Industry and Trade said the petrol price decreases were due to downward trends in the world in the past 15 days. The global price of RON 92 – which is used to produce biofuel E5 – averaged $18.47 a barrel, down $2.1 from the previous period and RON95 was at $19.73 per barrel, down $1.5 a barrel.

The WTI or West Texas Intermediate, a US light sweet crude oil blend in the US on April 20 was sharply reduced to less than $0 a barrel, making many people think petrol retail prices could be lowered to VND7,000-8,000 per litre.

However, the two ministries said the local retail prices were regulated following the oil prices on the Singapore transaction floor, not WTI in the US.

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 VND400 and VND1,400 per litre, respectively. Those for kerosene and diesel were VND1,600 per litre and mazut at VND500 per kilo.

The retail petrol prices were reduced by total VND9,359 per litre so far this year in eight consecutive times. — VNS