Hanoi, March 10, 2022: An employee pumps gasoline into his car. Photo by VnExpress/Pham Chieu
As many others have suggested, the Ministry of Finance wants to reduce the fuel environment tax by half.
If the government approves, the tax will be reduced to VND4,000 ($0.18) per liter for gasoline and VND2,000 to VND1,000 for diesel.
The ministry had previously suggested a 25% cut, while many others, such as the Ministry of Industry and Trade (MOI&T), suggested a 25% reduction. As pump prices rose to new heights amid a global shortage due to the Russia-Ukraine conflict, the government had requested a 50% reduction.
After rising by more than 15% this year due to a global shortage, the popular RON95 gasoline variety is now at a historical high of VND268,830 per liter.
They are expected rise to an all-time record on Friday afternoon. According to the Ministry of Industry and Trade, prices could rise by VND5,000-8,800 on Friday, or 18-30%. This would have a significant impact on inflation.
Distributors of gasoline have complained that they are losing sales due to the wide gap between global and local prices.
The gasoline stabilization fund was created to limit any price rises if necessary. It now has a balance in the region of VND620 billion.
