Gasoline prices may fall on New Year's Day
Deputy Prime Minister Vuong Dinh Hue has just directed the use of the Petroleum Price Stabilization Fund to offset price increases due to the application of the new environmental tax schedule.
According to Decree 83, the 2019 gasoline price adjustment period will be on January 5. However, from January 1, 2019, the environmental protection tax on gasoline will increase by VND1,000, which is 4 days earlier than the gasoline price adjustment period. Therefore, the management agency decided to postpone the gasoline price adjustment date to 0:00 on January 1, 2019.
Data from the Ministry of Industry and Trade shows that the average price of finished gasoline in the Singapore market in this cycle is 55 USD per barrel for RON 92 and 57 USD per barrel for RON 95, down 5-6% from the previous period. Therefore, in the new adjustment period on January 1, 2019, gasoline and oil prices will decrease.
Leaders of key enterprises in Ho Chi Minh City said that on January 1, 2019, environmental protection tax will increase for all gasoline and oil products. Specifically, environmental tax on gasoline will increase by VND1,000 per liter, diesel by VND500 per liter, kerosene by VND700; and mazut by VND1,100. Meanwhile, gasoline prices will decrease by VND500-700 compared to the previous period. If in this adjustment period, the management agency uses more of the stabilization fund, gasoline prices will decrease by about VND300-500. On the contrary, if the management agency keeps the fund allocation unchanged, the price of E5 RON 92 gasoline and oil will increase, while RON 95 will remain the same.
The Government Office has issued an official dispatch 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 Petroleum Price Stabilization Fund to not increase prices tomorrow, January 1, 2019, to offset the price increase due to the application of the new environmental protection tax schedule. He also requested the Ministry of Industry and Trade and the Ministry of Finance to continue to manage petroleum prices according to Decree No. 83.
In the adjustment period on December 21, E5 RON 92 gasoline continued to decrease by 394 VND per liter; RON95 gasoline decreased by 318 VND per liter. Diesel, kerosene, and 180CST fuel oil had corresponding decreases.
After adjustment, the price of each liter of E5 RON92 bio-fuel is no higher than VND16,787; RON 95 is at VND18,141, diesel is VND16,001, and kerosene is VND15,003.
Along with the price reduction, the joint ministries also kept the deduction level for E5 RON 92 gasoline at 300 VND. For RON 95, the deduction level is 1,000 VND per liter; diesel and kerosene are 1,200 VND per liter, and fuel oil is 1,400 VND per kilogram.
