People filling their bikes in Ha Noi. As of Friday, gas price is nearing VND30,000 per litre. — VGP Photo

Petrol prices continued to climb, nearing the VND30,000 per litre mark. As of 3pm Friday, E5RON92 gas has reached VND28,980 per litre, a VND2,910 increase from the previous cycle, RON95 reached 29,820, a VND2,990 increase. Diesel reached VND25,260, a VND3,940 increase.

It marked the seventh consecutive surge in price since the beginning of 2022 and the highest level in the last 8 years.

The Ministry of Industry and Trade forecast rising petrol prices in the domestic market as global petrol prices continue to climb. Since the beginning of the year, Brent crude oil has climbed from under US$80 per barrel in December last year to a $139 (highest since 2008) this week. It has, however, dropped to around $110 as of Friday.

Meanwhile, the country's petrol price stabilisation fund has grown thin with just around VND620 billion ($271 million) left.

The ministry said the upward trend will likely continue in the short and medium-term as the Ukraine-Russia conflict drags on while global demand on the rise as countries around the world try to speed up economic recovery.

In a recent development, the Ministry of Finance has proposed to slash VND2,000 of environmental tax on gasoline, VND1,000 for diesel and VND700 for kerosene starting on April 1 in an attempt to rein in surging petrol prices in Viet Nam.

A detailed proposal has been presented to the National Assembly's Standing Committee on a fast-track process for approval.

The move has been said to last until the end of the year. According to the ministry, it will cost the State budget nearly VND30 trillion based on last year's collected revenue. — VNS