Ministry of Finance: 'Gasoline imports profit more than 2 billion USD thanks to price reduction'

The Finance Ministry's leaders affirmed that there are scenarios in place in case crude oil prices drop to 30 USD per barrel, while budget revenue is now much less dependent on this source than 5-10 years ago.

In response to the continued decline in crude oil prices, down to 36 USD per barrel, on VTV on the evening of December 13, Deputy Minister of Finance Do Hoang Anh Tuan affirmed that this was expected.

- In 2016, the National Assembly estimated budget revenue with oil price at 60 USD per barrel, but now it is only 36 USD. What is the impact on budget revenue?

- The oil price has indeed dropped to 36 USD per barrel, but this is the price for future months and does not affect the budget revenue of 2015. Because the budget revenue from oil last year we reached and exceeded, bringing in about 65,000-66,000 billion VND.

Mr. Do Hoang Anh Tuan said that the budget is no longer too worried about revenue loss due to oil price shocks.

- So how does the Ministry of Finance calculate if oil prices continue to fall?

- We have built very specific scenarios, not only scenarios for oil prices at 60, 50, 45 USD per barrel, but also scenarios for 40, 35 and even 30 USD per barrel have been calculated.

However, it must be said that the 2015 budget revenue from crude oil at 66,000 billion VND only accounts for 6% of the total revenue. This figure is lower than the tax arrears - 76,000 billion VND. Crude oil revenue is no longer the decisive source as it was 5-10 years ago.

- How will such price reduction affect the import of finished petroleum products?

- It is expected that in 2016, Vietnam will import about 12.5-13 million tons of gasoline and oil, and if the crude oil price remains at the current 36 USD per barrel, we will save 2-2.1 billion USD.

Not to mention, the decrease in gasoline prices will reduce the price of input materials for production. The business situation of enterprises and people will be more favorable. At that time, tax revenue from the economy will increase, so the budget will benefit even more.

According to VNE