An employee updates the price of RON 92 gasoline at a petrol station in Ha Noi's Hoan Kiem District yesterday. — VNA/VNS Photo The Duyet

HA NOI — The Viet Nam National Petroleum Group (Petrolimex) yesterday reduced the price of RON 92 gasoline by VND600 (2.8 US cents) to VND24,210 ($1.15) per litre.

The move followed a joint decision by the ministries of Industry and Trade and Finance, which asked fuel dealers to cut retail prices.

This is the third time that the retail price of petrol has been reduced this year, with a total reduction of VND1,430 per litre after five consecutive increases.

The price of diesel was cut by VND80 to VND22,090 ($1.05) per litre. The price of kerosene was also reduced by VND70 per litre to VND22,250 ($1.06), while that of mazut was reduced by VND60 to VND18,380 ($0.88) per kilogramme.

The two ministries also asked traders to stop using the stabilisation fund together with the reduction.

Local petrol wholesalers were reported to be making high profits of VND500 to VND630 per litre, depending on the fuel, as the world fuel prices have been falling.

Estimates by the Viet Nam Petroleum Association showed that as of August 14, the average basic price of the A92 gasoline in the 30-day period was US$113,38 per barrel, while in the 10-day period it was $109,57 per barrel. The domestic retail petrol price is VND24,810 ($1.18) per litre, while the basic price is VND24,473 ($1.17) per litre.

The association said the traders made a profit of VND337 per litre of petrol, plus VND300 per litre received from the price stabilisation fund. In total, the traders made a profit of VND637 per litre.

The association also estimated that Viet Nam consumes 40 million tones of petrol a day. Wholesale dealers would make profit of several billion dong a day, as per the current profit of VND637 per litre.

Under the Government's Decree 84/2009/ND-CP, traders can adjust petrol prices up to 7 per cent in line with the world prices, according to the minimum calculating period of 10 days.

Nguyen Anh Tuan, director of the Finance Ministry's Price Management Department, said management of petrol prices follows the decree to ensure benefits to all parties including the State, businesses and consumers.

Tuan said the retail prices of petrol were adjusted without considering taxes and inflation. The joint ministries of Finance and Industry and Trade would use the stabilisation fund base on the price situation in the market.

Ngo Huy Loi, director of the Tax Policies Department, said under the import-export tax regulations, the maximum tax on imported petrol was 40 per cent.

The current import tax was 18 per cent for gasoline and between 14 and 16 per cent for kerosene. The current retail price includes 32.1 per cent taxes and fees or VND8,300 per litre. — VNS