Aug. 9, 2006
The Associated Press
HANOI, Vietnam — Vietnam has increased the cost of gasoline at the pump by as much as 10 percent as it seeks to cut government subsidies amid soaring global oil prices, state-controlled media reported Thursday.
From Wednesday, the price of diesel rose 10 percent to 8,600 dong ($0.54) per liter, while gasoline prices increased 9 percent to 12,000 dong ($0.75) per liter, the Liberated Saigon newspaper said.
Deputy Finance Minister Tran Van Ta was quoted by the paper as saying the hikes are necessary to scale back government subsidies and to curb smuggling of gasoline into Cambodia, where gas prices are 6,600 dong ($0.41) per liter more expensive.
Wednesday's price hike was the second this year, but the government still expects to pay out 12.8 trillion dong ($800 million) in gasoline subsidies this year, he said.
The government estimates that the latest increase will boost the cost of transport by 1.7 percent and the cost of offshore fishing by 4.9 percent.
Vietnam exports crude oil, but imports refined oil products. Its first oil refinery plant is under construction in central province of Quang Ngai.
From Wednesday, the price of diesel rose 10 percent to 8,600 dong ($0.54) per liter, while gasoline prices increased 9 percent to 12,000 dong ($0.75) per liter, the Liberated Saigon newspaper said.
Deputy Finance Minister Tran Van Ta was quoted by the paper as saying the hikes are necessary to scale back government subsidies and to curb smuggling of gasoline into Cambodia, where gas prices are 6,600 dong ($0.41) per liter more expensive.
Wednesday's price hike was the second this year, but the government still expects to pay out 12.8 trillion dong ($800 million) in gasoline subsidies this year, he said.
The government estimates that the latest increase will boost the cost of transport by 1.7 percent and the cost of offshore fishing by 4.9 percent.
Vietnam exports crude oil, but imports refined oil products. Its first oil refinery plant is under construction in central province of Quang Ngai.
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