Fuel prices fall to 2-month low
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Gasoline prices fell by 10 percent Monday to their lowest levels in two months after an environment tax cut. The price of the popular RON 95 gasoline was reduced by VND3,090 to VND29,670 a liter, and that of biofuel E5 RON 92 by VND3,110 to VND27,780 (US$1 = VND23,350).
The prices of other fuels like kerosene and diesel also fell by 4.2-11.4 percent.
The biggest drop in prices this year pushed them to their lowest levels since May 11.
Normally, authorities make gasoline price adjustments in the afternoon of the 1st, 11th and 21st of a month, but this time it was adjusted at midnight Sunday following a cut in the environment tax.
The tax, originally VND4,000 per liter and cut to VND2,000 in April, was brought down to VND1,000 by the Standing Committee of the National Assembly.
The Ministry of Finance has also proposed cuts to excise and value-added tax on gasoline to bring prices down further. They are expected to be approved in the next session of the National Assembly in October.
But industry insiders have called for the cuts to be made sooner, saying rising fuel costs have been one of the biggest stumbling blocks to their recovery after Covid-19.
Questions & Answers
Q.What specifically caused the recent fall in fuel prices?
What specifically caused the recent fall in fuel prices?
The recent fall in fuel prices was a direct result of a cut in the environment tax. This tax was reduced from VND2,000 per litre to VND1,000 by the Standing Committee of the National Assembly.
Q.When were these price adjustments typically expected, and why were they made earlier this time?
When were these price adjustments typically expected, and why were they made earlier this time?
Gasoline price adjustments are usually made on the 1st, 11th, and 21st of a month. However, this time the prices were adjusted at midnight Sunday, earlier than expected, due to the environment tax cut.
Q.Are there any further government plans to reduce fuel prices in the near future?
Are there any further government plans to reduce fuel prices in the near future?
Yes, the Ministry of Finance has proposed cuts to excise and value-added tax on gasoline. These are expected to be approved during the next session of the National Assembly in October.
Q.What impact have high fuel costs had on businesses, according to industry experts?
What impact have high fuel costs had on businesses, according to industry experts?
Industry insiders state that rising fuel costs have been one of the biggest challenges for their recovery. These costs are considered a major stumbling block for businesses after the Covid-19 pandemic.
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