The domestic retail price of petroleum increased by VND47 to touch VND16,892 (75 US cents) per litre yesterday. — Photo kienthuc.net

HA NOI (Biz Hub) — Petrol prices were hiked on Friday, for the sixth consecutive time. The domestic retail price of petroleum surged by VND47 to touch VND16,892 (75 US cents) per litre.

The ministries of trade and finance and industry and trade announced the hike at 3pm.

The price of E5 RON 92 biofuel rose by VND43 to VND16,576 per litre. The prices of diesel and kerosene remained unchanged at VND13,023 and VND11,543 per litre, respectively. The price of mazut was reduced by VND5 per kilo to VND10,060.

The two ministries have kept the price stabilisation fund for petroleum unchanged at VND600 per litre. In addition, the fund for diesel and kerosene were reduced from VND300 per litre to VND219 and VND114 per litre, respectively.

Retail petrol prices have increased 11 times so far this year, and in total by VND5,000 per litre. Its rates were also decreased eight times, in total by VND4,400 per litre.

In the latest adjustment on October 20, the price of RON 92 has also risen by VND441 to VND16,845 per litre. The cost of E5 RON 92 biofuel also increased by VND392 to VND16,533 per litre.

Responding to queries about the country's high tax for petroleum following the restructuring, Phạm Đinh Thi, director of finance ministry's tax policies department, recently told the media that each tax has a different target. Thi said Việt Nam's tax system is now in sync with the state of affairs in the world.

All products that come through the border have been levied import, special consumption and value added tax. An environmental protection tax has also been imposed on petroleum, of VND3,000 per litre and VND300 per litre for use of the price stabilisation fund, Thi said.

The tax on RON 92 in Việt Nam is 41.5 per cent, which is low compared to Cambodia's  56 per cent and South Korea's 73 per cent.

Viet Nam also imposes a low VAT, of five to 10 per cent. It's much higher in countries such as Cambodia (15 per cent), China(17 per cent), Italy and France (19 per cent).

Vietnam National Petroleum Group's (Petrolimex) balance of the price stabilisation fund for petroleum was estimated at VND1.75 trillion as of Thursday, a reduction of VND58 billion from VND1.81 trillion since the last announcement on October 20. This is the first decrease after six consecutive rises of Petrolimex's price stabilisation fund. — VNS