Petrol prices fell on Friday, the first decline following three increases totalling VND3,500 per litre. — Photo vtc.vn

Petrol retail prices were reduced at 3pm on Friday, the ministries of industry and trade and finance jointly announced.

The prices of RON 95-III fell by VND592 per litre to VND21,599 (US$0.92) and E5 RON 92 by VND200 to VND20,488.

Diesel is VND81 cheaper at VND17,614 and kerosene, VND203 lower at VND16,422.

The ministries also decided to reduce the use of subsidies from the petrol price stabilisation fund as the balance at petrol firms was negative.

Subsidies for E5 RON 92 was reduced by VND457 and that for RON 95 zero per litre, respectively. For diesel, kerosene and mazut, the subsidies remained unchanged.

According to the ministries, in the fortnight before May 17 global prices fell.

The price of RON 92, which is used to produce biofuel E5, averaged $75.58 per barrel while RON 95 was at $77.39, down $5.86 and $4.89 respectively.

This was the first retail price cut after three consecutive rises totalling VND3,500 per litre. On the last occasion on May 2, the prices of E5 RON 92 and RON 95 increased by nearly VND1,000 per litre.

The Government recently instructed ministries and local administrations to take proactive measures to contain inflation at 3.3-3.9 per cent this year.

It instructed the two ministries to respond appropriately if fuel prices surge and threaten to affect the inflation target. — VNS