Release the stabilization fund, keep gasoline prices unchanged

At 0:30 on March 14, the Ministry of Industry, Trade and Finance said that the price of RON 95-III gasoline (a popular type on the market) in this operating period remains the same at 25,570 VND per liter, E5 RON 92 is 22,500 VND. Similarly, each liter of diesel and kerosene is equal to the March 12 operating period, 27,020 VND and 26,930 VND, respectively.

This is the fourth consecutive operating period in which inter-Ministries have used the Price Stabilization Fund. Keeping fuel prices during this operating period aims to stabilize the petroleum market and avoid socio-economic impacts, according to the Ministry of Industry and Trade.

Accordingly, RON 95-III gasoline, kerosene and fuel oil all have a budget cost of 4,000 VND, while diesel oil costs 5,000 VND per liter.

Gasoline and oil prices change as follows:

Unit: VND/liter or kg, depending on type.

World fuel prices on March 11 tend to increase or decrease depending on the product compared to the previous day. Each average barrel of RON 95 gasoline increased by 1.4% to 129.2 USD; Diesel added nearly 2%, mazut decreased by 1.7%.

Currently, mandatory reserves at petroleum wholesalers ensure 20 days of supply according to regulations. At a meeting earlier this week, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that Vietnam has not yet had to use national reserves – which are only used in cases of import shortages or serious declines in domestic production. He affirmed that the operator has a response scenario and domestic petroleum resources are enough to meet consumption demand until the end of March.

The government also uses tax and fee tools to support the market. Currently, the preferential import tax (MFN) on gasoline and some mixing materials has been reduced to 0%. This is a solution to stabilize supply, helping key businesses have more motivation to seek and import petroleum from markets that do not have a free trade agreement (FTA) with Vietnam.

The Ministry of Finance is submitting to the Government a plan to adjust the environmental protection tax on gasoline to 0 VND on March 12. Currently, this tax rate is 2,000 VND per liter for gasoline (except ethanol) and 1,000 VND for oil. Bringing this tax to 0 VND will help reduce gasoline prices by 1,000-2,000 VND per liter.