Revenue from crude oil falls sharply in Jan

Thursday, Feb 04, 2016 08:26

The State budget revenue from crude oil fell two thirds over the past year to $145 million in January. — VNA/VNS Photo Huy Hung
HA NOI (Biz Hub) — The total state budget revenue in January was 95 per cent of the revenue year-on-year due to about 66 per cent fall in crude oil revenue, the finance ministry said.

The ministry said the total budget revenue last month stood at VND102.6 trillion (US$4.66 billion), or 10.1 per cent of the expected revenue and 95 per cent of the revenue in January 2015.

The revenue from the domestic market gained a year-on-year increase of 5.8 per cent to touch VND93 trillion ($4.23 billion), because the revenue from major economic sectors increased, with the private industrial and trade sector revenue rising 14.2 per cent, the foreign-invested enterprise sector revenue increasing 13.7 per cent; and the individual income tax revenue jumping by 20 per cent.

However, the ministry said the budget revenue from crude oil fell by 65.7 per cent year-on-year to reach VND3.2 trillion ($145.5 million) in January.

The reduction was due to the slump in the average crude oil price in Viet Nam by $22 to reach $38 per barrel, as against expected calculations following the fall in world crude oil prices, the ministry said.

The budget revenue from import and export activities also dropped by 19.8 per cent year-on-year to reach VND17.8 trillion ($809.1 million).

The ministry said the value of key exports fell, reducing the income from exports. The value of completely built-up auto exports plunged by 55.9 per cent, of steel exports by 20.9 per cent and of equipment and component exports by 4.8 per cent.

Meanwhile, the expenditure revenue reached VND107.86 trillion ($4.9 billion), the ministry said, leading to a budget deficit of VND5.26 trillion ($240 million) in January.

Petrol price falls

The domestic retail price of petroleum yesterday dropped by VND729 to touch VND14,713 (65 US cents) per litre, the Ministry of Industry and Trade said.

The price of E5 RON 92 biofuel has fallen by VND496 to touch VND14,263 (63 cents) per litre. The diesel price has also decreased by VND627 to reach VND9,580 (42 cents) per litre. The price of kerosene has dipped by VND483 to end at VND8,905 (39 cents) per litre, while that of mazut saw a slight decline of VND20 to reach VND7,225 (32 cents) per kilogram.

The ministry said the falling domestic retail petroleum price was attributable to the downward trend of the global fuel price over the past fortnight.

This has been the third consecutive reduction so far this year. The latest dip in the petrol retail price was VND600 to reach VND15,440 (68 cents) per litre and was the lowest level seen in the past six years.

The ministry and finance ministry also decided to keep the petrol price stabilisation fund unchanged.

Stabilising prices

The national fuel price stabilisation fund had more than VND3.97 trillion ($180.4 million) as of December 31, 2015, the finance ministry said on Tuesday.

As of January 1, 2015, the fund's balance was more than VND4 trillion ($181.8 million).

The ministry said among 21 fuel trading firms, 17 recorded positive balances in their own stabilisation funds.

The Viet Nam National Petroleum Group (Petrolimex) has the largest balance of VND2.377 trillion ($108 million), followed by the Military Petroleum Corporation that has more than VND389 billion ($17.68 million).

The PetroVietnam Oil Corporation posted more than VND325 billion ($14.7 million), while Sai Gon Petro had more than VND291 billion ($13.2 million).

The Nam Viet Oil Refinery and Petrochemicals Company took the lead in running a negative balance, amounting to more than VND25 billion ($1.13 million)

Last year, fuel prices were revised 23 times, with more reductions than increases. Specifically, petrol prices were reduced 12 times, increased six times and stayed unchanged five times, Deputy Minister of Industry and Trade Do Thang Hai said. — VNS

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