Gasoline prices have risen to their highest level since the beginning of the year.
Each liter of E5 RON92 gasoline now costs 20,906 VND, and RON95 gasoline costs 22,347 VND after the price increase effective from 3 PM today, October 6th.
According to the announcement on retail fuel price adjustments from the Ministry of Industry and Trade - Ministry of Finance, domestic retail gasoline and diesel prices will increase by 403 - 752 VND per liter or kilogram, depending on the type.
Specifically, E5 RON92 gasoline increased by 675 VND per liter; RON 95 gasoline increased by 577 VND; kerosene by 403 VND, diesel by 485 VND, and the highest increase was for fuel oil at 752 VND per kilogram.
After the adjustment, the maximum price per liter of E5 RON92 gasoline is 20,906 VND; RON95 is 22,347 VND; diesel fuel is priced at 18,611 VND, kerosene at a maximum of 17,086 VND, and fuel oil at 15,694 VND.
According to the operator, the reason for the high domestic retail prices is the significant fluctuation in the average price of refined gasoline on the world market over the past 15 days, increasing by 3-5% depending on the type. Statistics from the inter-ministerial committee show that currently, each barrel of RON92 gasoline averages $90.363; RON 95 gasoline is $92.400; and diesel is $96.889...
To curb the drastic increase in domestic retail prices, the inter-ministerial committee continues to release funds from the Fuel Price Stabilization Fund, with E5 RON92 gasoline receiving 1,563 VND per liter and RON 95 gasoline receiving 700 VND per liter. Other diesel products receive 300-400 VND per liter from the stabilization fund. Simultaneously, the authorities have stopped allocating funds to the fuel price stabilization fund, reducing it to 0 VND per liter/kilogram.
This is the third consecutive increase in retail gasoline and diesel prices since the beginning of September. After three consecutive price increases, the total price of E5 RON 92 gasoline has increased by approximately 1,296 VND per liter; RON 95 gasoline has increased by more than 1,170 VND per liter.
From January 1, 2019, the environmental tax on gasoline will increase from 3,000 VND per liter to 4,000 VND, following the National Assembly Standing Committee's approval of the draft Resolution on the environmental protection tax schedule for petroleum products. According to the government's calculations in the draft proposal, the increase in the environmental tax on gasoline and diesel will only cause the CPI in 2019 to rise by 0.07 - 0.09%.
As the coordinating agency for managing and regulating gasoline and diesel prices, the Ministry of Industry and Trade, in a recent meeting of the Price Management Steering Committee, still suggested postponing the increase in environmental tax on gasoline and diesel due to concerns about its impact on inflation next year.
