Gasoline and oil prices dropped by more than 3,000 VND per liter

Normally, new gasoline prices are adjusted every 10 days at 3:00 p.m., but in the July 11 adjustment period, the price was announced earlier due to the environmental protection tax reduction taking effect from 0:00 a.m.

After adjustment of the associationMinistry of Industry and Trade - Finance, the price of E5 RON 92 gasoline is 27,780 VND (down 3,110 VND), RON 95-III gasoline is 29,670 VND (down 3,090 VND) per liter. Thus, the price of gasoline has dropped to below 30,000 VND per liter, equal to the price threshold in mid-March.

Prices of petroleum products also decreased. Diesel oil is 26,590 VND per liter, down 3,020 VND. Kerosene has a new price of 26,340 VND, down 2,010 VND. Fuel oil also dropped to 18,920 VND per kg, down 800 VND.

Gasoline prices have dropped sharply after several consecutive increases. Photo: Quang An

After 5 periods of not allocating to the Price Stabilization Fund for gasoline, this time the world price is falling sharply so the management agency has decided to allocate 950 VND per liter of gasoline to the fund. Diesel is allocated 550 VND per liter, kerosene 800 VND and mazut 950 VND per kg. This is to create room for the fund in the next management and help the Fund balance at many key enterprises to be less negative.

The price of gasoline and oil from the operating period of July 11 until the end of the year will be reduced by a "dramatic" amount of environmental protection tax. That is, each liter of gasoline will be reduced by 1,000 VND, and oil products by 500-700 VND per liter depending on the type (excluding VAT). For kerosene, the environmental protection tax will remain at 300 VND per liter because this is the floor level in the tax rate bracket.

Previously, the environmental protection tax on gasoline and oil was reduced by 50% according to the decision of the National Assembly Standing Committee from April 1 to the end of this year. However, due to the sharp increase in fuel prices, which remain high, the competent authority decided to further reduce this tax from July 11 to the end of this year to cool down this commodity and avoid impacting inflation.

In today's document on implementing the National Assembly Standing Committee's Resolution on further reducing environmental protection tax, Deputy Prime Minister Le Minh Khai requested the Ministry of Finance to promptly amend and supplement the Decree on preferential import and export tariffs (MFN) to diversify supply sources for the domestic market.

The Ministry is also required to promptly study the reduction of special consumption tax and value added tax (VAT) on gasoline and oil to submit to the National Assembly for consideration and appropriate decision in case world gasoline and oil prices continue to have complicated developments, increase or remain high.

According to experts, the calculation of VAT and special consumption tax reduction on gasoline and oil needs to be done and submitted to the National Assembly soon, and should not wait until October - the National Assembly's regular scheduled session.

Since the beginning of the year, domestic retail gasoline and oil prices have been adjusted 18 times, with 13 increases and 5 decreases. Compared to the end of last year, the price of each liter of RON 95-III is still 6,380 VND more expensive, E5 RON 92 has increased by 5,230 VND per liter; and diesel is 9,020 VND.