The Ministry of Industry and Trade (MOIT) explained high petroleum prices

Behind the surge in petroleum prices, domestic oil prices were continuously increased at 995 VND per liter in two-period price management, MOIT said, because petroleum prices are soaring around the world. As a result, petroleum price raised up.

Specifically, according to MOIT, on October 2th, each barrel of RON 92 gasoline was traded at 92.50 USD in Singapore, the highest since November 2014. Similarly, each barrel of diesel 0.05S was traded at 100.14 USD in that country on October 3th, the highest since October 2014. Global crude oil prices have increased sharply so that the average petroleum product prices increased from 3.54 USD/barrel to 5.17 USD/barrel. Particularly, the Oil Mazut 180CST 3.5S increased 38.074 USD/ton compared to the previous period.

Along with the world oil price, USD/VND currency exchange rate over the past time will have an impact on the retail price. Vietcombank is setting the daily reference exchange rateat 23,379 VND/USD (an increase of 42 VND/USD) during the last 15 days. When combined with the above two factors, according to Official Letter No. 12218 of the Ministry of Finance, the weighted average import tariff applied in the fourth quarter of fiscal 2018, Oil Mazut will increase from 2.04% to 2.47%. Kerosene Oil increased from 0.14%to 0.17%. Diesel fuel from 0.88% dropped to 0.55%.

According to MOIT, the petrol price stabilization fundhas been used continuously to control the impact of the price of petroleum products on the domestic petrol pricesin order to keep gasoline prices, thereby contributing to controlling inflation. The easing of the petroleum price stabilization fund at the right amount madethe retail price of E5 RON 92 gasoline increased only 10.9%, compared with the end of December 2017, and the price of RON 95 gasoline increased 6.2%, compared with the time announcing the base price of RON 95 gasoline on April 23. Meanwhile, world market prices of petroleum products increased from 28.98 to 39.68% compared with September 2017 and the average 9 months of 2018 increased from 26.17 to 38.1%.

According to Deputy Minister of Industry and Trade Do Thang Hai, the use of the petrol price stabilization fund not only helps control CPI but also supports the production and business activities of enterprises and the people's life. Mr. Do Thang Hai said that from the beginning of the year to the end of September, the Ministry of Finance has 18 times to regulate the price of petrol and diesel, with 2 times of reduction, 6 times of price adjustment. The total increase of about 2,649 VND/liter and 10 times of stabilizing prices. About the environmental protection tax on petrol and oil, Mr. Do Thang Hai said that the tax period falls into December and January. This will increase the price of petroleum, affect the control of CPI in 2019 and manufacturing businesses, people's life.

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