Sharp, sudden increase in fuel prices

The Ministry of Finance and the Ministry of Industry and Trade have just agreed to an increase in fuel prices of VND600 per litre starting December 18.

According to the announcement, due to complicated changes in the world market, domestic wholesalers took losses of VND200-1,400 per litre. Meanwhile, the price stabilisation funds have been exhausted.

The fund had VND72 billion as of December 10, and seven firms are no longer be able to afford their contributions.

Under the new policy, gasoline will be allowed to be sold at VND584 per litre more, VND653 per litre for diesel and VND384 per litre for kerosene. Mazut prices will be kept stable.

The Ministry of Finance said normal profits will not be added to the basic prices and they will halt the use of the price stabilisation fund for most petroleum products, although ministries will still compensate fuel companies VND700 per litre for kerosene because of low consumption.

The Vietnam National Petroleum Group (Petrolimex) increased their A92 price to VND24,210 (USD1.16) per litre and A95 price to VND24,710.