Import taxes on petrol and oil products would be cut from the start ofnext year to help petrol and oil dealers overcome trading difficulties,said the Ministry of Finance.
The new rate would fall from 12 to 6 percent for petrol products and from 5 to 2 percent for kerosene and diesel oil.
The measure was aimed at reducing domestic trading losses, following aGovernment decision to stabilise the price of petrol and oil productsby the end of the first quarter next year, said the ministry.
Petrol and oil dealers are currently operating at a loss, losing 2,400VND per litre of petrol and 1,850-1,900 VND per litre of oil, due to anincrease in the world oil price.
On the Singaporemarket, A92 petrol is at 95.65 USD per barrel and oil is up to 100USD per barrel, said the Vietnam National Petroleum Corporation(Petrolimex). (1 barrel = 159 litres)
The tax cutwas the latest measure the Government had taken to stabilise thedomestic market with the continued increase of the world oil price, saidNguyen Tien Thoa, head of the Ministry of Finance's Price ControlDepartment.
The government had earlier granteddealers 1,200 VND per litre of petrol from the price stabilisation fundto discourage them from increasing prices, he said.
The dealers contributed 3.6 trillion VND (172.3 million USD) to the fundby July 30, 2010 and received 1.05 trillion VND (50 million USD) fortheir losses.
A litre of petrol in Vietnam costs16,400VND-16,900 VND, a litre of diesel costs 14,750 VND while a litreof kerosene is 15,100 VND and fuel oil costs 12,990 VND per litre./.
The new rate would fall from 12 to 6 percent for petrol products and from 5 to 2 percent for kerosene and diesel oil.
The measure was aimed at reducing domestic trading losses, following aGovernment decision to stabilise the price of petrol and oil productsby the end of the first quarter next year, said the ministry.
Petrol and oil dealers are currently operating at a loss, losing 2,400VND per litre of petrol and 1,850-1,900 VND per litre of oil, due to anincrease in the world oil price.
On the Singaporemarket, A92 petrol is at 95.65 USD per barrel and oil is up to 100USD per barrel, said the Vietnam National Petroleum Corporation(Petrolimex). (1 barrel = 159 litres)
The tax cutwas the latest measure the Government had taken to stabilise thedomestic market with the continued increase of the world oil price, saidNguyen Tien Thoa, head of the Ministry of Finance's Price ControlDepartment.
The government had earlier granteddealers 1,200 VND per litre of petrol from the price stabilisation fundto discourage them from increasing prices, he said.
The dealers contributed 3.6 trillion VND (172.3 million USD) to the fundby July 30, 2010 and received 1.05 trillion VND (50 million USD) fortheir losses.
A litre of petrol in Vietnam costs16,400VND-16,900 VND, a litre of diesel costs 14,750 VND while a litreof kerosene is 15,100 VND and fuel oil costs 12,990 VND per litre./.
