Gasoline prices may fall on New Year's Day.
Deputy Prime Minister Vuong Dinh Hue has just directed that the Fuel Price Stabilization Fund be used to compensate for the price increase resulting from the application of the new environmental tax rate.
According to Decree 83, the fuel price adjustment period for 2019 was scheduled for January 5th. However, from January 1st, 2019, the environmental protection tax on gasoline will increase by 1,000 VND, which is 4 days earlier than the scheduled price adjustment. Therefore, the regulatory agency decided to postpone the fuel price adjustment to 0:00 AM on January 1st, 2019.
Data from the Ministry of Industry and Trade shows that the average price of finished gasoline products in the Singapore market during this cycle was $55 per barrel for RON 92 and $57 per barrel for RON 95, a decrease of 5-6% compared to the previous period. Therefore, in the new price adjustment on January 1, 2019, gasoline and diesel prices will decrease.
According to a leading fuel distributor in Ho Chi Minh City, environmental protection taxes will increase across the board on January 1, 2019. Specifically, the environmental tax will increase by 1,000 VND per liter for gasoline, 500 VND per liter for diesel, 700 VND for kerosene, and 1,100 VND for fuel oil. Meanwhile, gasoline and diesel prices will decrease by 500-700 VND compared to the previous cycle. If the regulatory agency uses the price stabilization fund during this adjustment period, gasoline prices will decrease by approximately 300-500 VND. Conversely, if the regulatory agency maintains the current level of fund contributions, the prices of E5 RON 92 gasoline and diesel will increase, while RON 95 will remain unchanged.
The Government Office has issued a document conveying the opinion of Deputy Prime Minister Vuong Dinh Hue, requesting the Ministry of Industry and Trade and the Ministry of Finance to use the fuel price stabilization fund to prevent a price increase tomorrow, January 1, 2019, to offset the price increase caused by the application of the new environmental protection tax rate. He also requested the Ministry of Industry and Trade and the Ministry of Finance to continue managing fuel prices according to Decree No. 83.
At the price adjustment on December 21st, E5 RON 92 gasoline continued to decrease by 394 VND per liter; RON 95 gasoline decreased by 318 VND per liter. Diesel, kerosene, and 180CST fuel oil also saw corresponding reductions.
After the adjustment, the price per liter of E5 RON92 bio-gasoline will not exceed 16,787 VND; RON 95 will be at 18,141 VND, diesel at 16,001 VND, and kerosene at 15,003 VND.
Along with the price reduction, the inter-ministerial committee also maintained the contribution rate for E5 RON 92 gasoline at 300 VND. For RON 95, the contribution rate remains at 1,000 VND per liter; for diesel and kerosene, it is 1,200 VND per liter; and for fuel oil, it is 1,400 VND per kilogram.
