Domestic retail price of petroleum fell by VND200 to touch VND15,698 per litre on July 5. — VNA/VNS Photo

HA NOI (Biz Hub) — The domestic retail price of petroleum fell by VND200 to touch VND15,698 per litre on July 5, the Ministry of Industry and Trade (MOIT) said.

The price of E5 RON 92 biofuel also dipped by VND200 to touch VND15,447 per litre. The prices of diesel and kerosene remained unchanged at VND12,298 and VND10,667 per litre respectively. The price of mazut went up VND260 to VND9,001 per kilogramme.

The MOIT and the Ministry of Finance (MoF) also decided to reduce the use of the price stabilisation fund for petroleum to VND426 per litre. Usage of the fund for E5 RON 92 biofuel remained at VND467 per litre, while diesel was at VND472 per litre; kerosene, VND669 per litre; and mazut, VND151 per kilogramme.

In the latest adjustment on June 20, the prices of petroleum fell by VND341 to VND16,168 per litre, while that of E5 RON 92 biofuel also fell by VND336 to VND15,647 per litre.

Petrol prices in Singapore, Viet Nam's main petroleum exporter, have seen a downward trend after the latest adjustment. Statistics from the MOIT showed that by the beginning of July, the imported petroleum price was $53.41 per barrel, a reduction of $3 per barrel from June 20.

Imported petrol tax drops

The MoF on Monday announced the new calculation of petroleum import tax based on a weighted average of the tariffs as the basis for price calculation in accordance with the portion of petrol imported into Viet Nam from ASEAN countries, China and South Korea in the second quarter of this year.

Accordingly, the imported tax on petroleum will be 15.74 per cent; diesel, 1.84 per cent; and kerosene and mazut, zero per cent.

The taxes were lower than those in the previous quarter, including 18.35 per cent for petroleum and 2.32 per cent for diesel.

Earlier, the Viet Nam Petroleum Association (VINPA) sent a notice to the ministry rejecting the calculation as unsuitable.

The association said the calculation had not followed Decree No. 83/2014/ND-CP on petrol trading.

In addition, the taxes had not sufficiently affected the world and domestic petrol markets, it added.

VINPA had sent a similar notice to the ministry in May as well. However, the ministry said the calculation was the most reasonable method for the current period to ensure advantages for the State, businesses and consumers as well as for national energy security. — VNS