20/11/2007State to spend VND12tril this year to keep petrol price stabilized
VietNamNet Bridge – The Government has asked petrol importers not to raise retail prices at this moment. However, it has warned that the price increases may occur if the world’s prices keeps fluctuating.
According to the Ministry of Industry and Trade (MOIT), by the end of October 2007, the State had spent VND6tril ($375mil) to compensate the losses incurred by petrol importers due to the increased import petrol prices. If the world’s price keeps firmly high at over $90/barrel, the state will have to spend VND12tril ($750mil) for loss compensation this year.
However, the loss the state will suffer may be higher if counting on the reduction in state collection brought about by the import tax cut on petrol.
In fact, the disbursement for loss compensation has been going very slowly: only VND2,300bil (4143.75mil) have been disbursed so far this year, or 38% of the real loss. This has put difficulties for petrol importers, as they cannot arrange capital for business. The most worrying problem is that if the situation prolongs, it would badly affect importing and petrol supply.
According to petrol importers, with the current world’s prices, the cost for one A92 litre of petrol would be VND12,667/litre after tax and expenses. Meanwhile, one litre of diesel 0.05%S would cost VND12,521, one litre of kerosene VND12,752/litre, mazut VND9,521/litre. As such, retailers are incurring the loss of VND1,500/litre for A92 petrol, VND3,600/litre for diesel, VND3,500/litre for mazut, and VND4,000/litre for kerosene.
Meanwhile, A92 petrol is selling at VND15,196/litre in Cambodia (September 1, 2007), VND15,569/litre in Laos. China has also raised the petrol price by 10%. With such big gaps of petrol prices in Vietnam and other countries, the illegal trading of petrol through border gates has been anticipated.
According to MOIT, the world’s prices have been increasing sharply recently. If comparing the average price of 2006 and the average price from January 1, 2007 to October 12, 2007, one would see that the crude oil price has risen from $64.04/barrel to $64.8/barrel (+6.2%), A92 petrol from $72.3/barrel to $78.1/barrel (+8%), diesel 0.25S from $77.8/barrel to $81.5/barrel (+4.8%), mazut from $317.4/tonne to $350/tonne (+10.5%).
Meanwhile, in the domestic market, diesel, mazut and kerosene prices, which have been defined by the Government, did not see any price increases in 2007 compared to 2006.
The petrol prices have been adjusted four times (up 2 and down 2). In early 2007, the petrol price was VND11,300/litre, and the price has increased by 1.6% if compared to the average price of VND11,125/litre of 2006, the relatively low increases if compared to the increases in the world.
To date, the Government has been trying to stabilize the petrol market. However, the work of stabilizing prices has become more and more difficult when the crude oil price has nearly hit the $100/barrel level. The Government has expressed its viewpoint that the petrol price adjustment would be undertaken if the prices would go up dramatically.
Associate Prof, Dr Ngo Tri Long from the Finance Institute said that once the oil price nearly hits the $100/barrel level, the Government should think of adjusting retail prices.
Sources said that in a recent meeting among government authorities and experts, the idea of raising petrol price by VND800/litre has been suggested.
According to the Ministry of Industry and Trade (MOIT), by the end of October 2007, the State had spent VND6tril ($375mil) to compensate the losses incurred by petrol importers due to the increased import petrol prices. If the world’s price keeps firmly high at over $90/barrel, the state will have to spend VND12tril ($750mil) for loss compensation this year.
However, the loss the state will suffer may be higher if counting on the reduction in state collection brought about by the import tax cut on petrol.
In fact, the disbursement for loss compensation has been going very slowly: only VND2,300bil (4143.75mil) have been disbursed so far this year, or 38% of the real loss. This has put difficulties for petrol importers, as they cannot arrange capital for business. The most worrying problem is that if the situation prolongs, it would badly affect importing and petrol supply.
According to petrol importers, with the current world’s prices, the cost for one A92 litre of petrol would be VND12,667/litre after tax and expenses. Meanwhile, one litre of diesel 0.05%S would cost VND12,521, one litre of kerosene VND12,752/litre, mazut VND9,521/litre. As such, retailers are incurring the loss of VND1,500/litre for A92 petrol, VND3,600/litre for diesel, VND3,500/litre for mazut, and VND4,000/litre for kerosene.
Meanwhile, A92 petrol is selling at VND15,196/litre in Cambodia (September 1, 2007), VND15,569/litre in Laos. China has also raised the petrol price by 10%. With such big gaps of petrol prices in Vietnam and other countries, the illegal trading of petrol through border gates has been anticipated.
According to MOIT, the world’s prices have been increasing sharply recently. If comparing the average price of 2006 and the average price from January 1, 2007 to October 12, 2007, one would see that the crude oil price has risen from $64.04/barrel to $64.8/barrel (+6.2%), A92 petrol from $72.3/barrel to $78.1/barrel (+8%), diesel 0.25S from $77.8/barrel to $81.5/barrel (+4.8%), mazut from $317.4/tonne to $350/tonne (+10.5%).
Meanwhile, in the domestic market, diesel, mazut and kerosene prices, which have been defined by the Government, did not see any price increases in 2007 compared to 2006.
The petrol prices have been adjusted four times (up 2 and down 2). In early 2007, the petrol price was VND11,300/litre, and the price has increased by 1.6% if compared to the average price of VND11,125/litre of 2006, the relatively low increases if compared to the increases in the world.
To date, the Government has been trying to stabilize the petrol market. However, the work of stabilizing prices has become more and more difficult when the crude oil price has nearly hit the $100/barrel level. The Government has expressed its viewpoint that the petrol price adjustment would be undertaken if the prices would go up dramatically.
Associate Prof, Dr Ngo Tri Long from the Finance Institute said that once the oil price nearly hits the $100/barrel level, the Government should think of adjusting retail prices.
Sources said that in a recent meeting among government authorities and experts, the idea of raising petrol price by VND800/litre has been suggested.
7 comments:
Hmm ... sounds like mee chkout (Socheata) started to appreciated Vietcong commie government now. Maybe she's proposed Khmer to go communist to lower gas price or something.
This fact show us clearly that the cambodians government is the worst in asia country.
The only law is CORRUPTION.
Noope, that just show there are too many Ah lowlife Khmer-Yuon troublemakers in Cambodia.
Since the beginning of time the Vietcong master always told AH HUN SEN Vietcong slave not to copy the action of the Vietcong master and the Vietcong master always force the Vietcong slave to do what the Vietcong master is preaching!
It is about time that AH HUN SEN Vietcong slave needs to stop listening to the Vietcong master preaching and start listening to himself!
No, if we stop listened to Vietcong, Ah Khmer-Yuon criminals will killed all Khmers.
Khmer-YOun? What?
Stop playing dumb, 8:08. Everyone know there are all sorts of Khmers. There are Ah Khmer-Barang/Canadian/AU/UK/.../and Yuon.
Post a Comment