Hanoi (dpa) - Vietnam raised retail gasoline prices by 31 per cent Monday to reduce state fuel subsidies and bring local prices in line with international levels, local media said.
The Ministry of Finance announced the decision at a press conference Monday morning. Fuel trading companies will be allowed to raise the price of A92-grade gasoline from 14,500 dong (0.86 dollars) to 19,000 dong (1.13 dollars) per litre, reported the news website dantri.com.vn.
Prices of kerosene will rise 44 per cent to 20,000 dong (1.19 dollars) per litre, while diesel fuel will rise 14 per cent to 15,950 dong (94.9 cents) per litre, the website said.
"If prices had not been raised, fuel trading firms would suffer losses of between 67 trillion dong (3.98 billion dollars) and 72 trillion dong (4.28 billion dollars) [this year]," Minister of Finance Vu Van Ninh was quoted as saying.
Ninh said local fuel trading companies reported losses of 14.5 trillion dong (864 million dollars) in the first six months of this year.
Ninh said the new gasoline price in Vietnam is still far below that in neighbouring countries.
"The price of gasoline in Thailand is 20,220 dong (1.2 dollars) per litre, while it is 27,129 dong (1.61 dollars) per litre in Singapore and 23,253 dong (1.38 dollars) in Cambodia," Ninh said.
The move threatens to worsen Vietnam's inflation rate, which topped 18 per cent in the first six months of this year.
Food prices grew fastest, at 59 per cent over the first six months, followed by construction materials, which rose 14 per cent.
Vietnam is desperate to bring down its inflation rate, which is hurting the country's exports, driving workers to strike for higher pay and damaging confidence in dong.
Late last month, the Ministry of Planning and Investment announced a list of 1,600 state budget-funded projects with combined investment of 5.5 trillion dong (more than 330 million dollars) to be delayed or slowed down.
The government has also pledged to reduce expenditures on "off-budget" bond-issue funded infrastructure projects by 25 per cent, representing a cut of more than 8 trillion dong (480 million dollars).
Further, the government has ordered large state-owned enterprises to cut back on unnecessary expenditures and investments in non-core business areas.
In May, the National Assembly decided that fighting inflation took precedence over faster growth, and lowered its target for 2008 GDP growth from 8.5-9 per cent to 7 per cent.
The Ministry of Finance announced the decision at a press conference Monday morning. Fuel trading companies will be allowed to raise the price of A92-grade gasoline from 14,500 dong (0.86 dollars) to 19,000 dong (1.13 dollars) per litre, reported the news website dantri.com.vn.
Prices of kerosene will rise 44 per cent to 20,000 dong (1.19 dollars) per litre, while diesel fuel will rise 14 per cent to 15,950 dong (94.9 cents) per litre, the website said.
"If prices had not been raised, fuel trading firms would suffer losses of between 67 trillion dong (3.98 billion dollars) and 72 trillion dong (4.28 billion dollars) [this year]," Minister of Finance Vu Van Ninh was quoted as saying.
Ninh said local fuel trading companies reported losses of 14.5 trillion dong (864 million dollars) in the first six months of this year.
Ninh said the new gasoline price in Vietnam is still far below that in neighbouring countries.
"The price of gasoline in Thailand is 20,220 dong (1.2 dollars) per litre, while it is 27,129 dong (1.61 dollars) per litre in Singapore and 23,253 dong (1.38 dollars) in Cambodia," Ninh said.
The move threatens to worsen Vietnam's inflation rate, which topped 18 per cent in the first six months of this year.
Food prices grew fastest, at 59 per cent over the first six months, followed by construction materials, which rose 14 per cent.
Vietnam is desperate to bring down its inflation rate, which is hurting the country's exports, driving workers to strike for higher pay and damaging confidence in dong.
Late last month, the Ministry of Planning and Investment announced a list of 1,600 state budget-funded projects with combined investment of 5.5 trillion dong (more than 330 million dollars) to be delayed or slowed down.
The government has also pledged to reduce expenditures on "off-budget" bond-issue funded infrastructure projects by 25 per cent, representing a cut of more than 8 trillion dong (480 million dollars).
Further, the government has ordered large state-owned enterprises to cut back on unnecessary expenditures and investments in non-core business areas.
In May, the National Assembly decided that fighting inflation took precedence over faster growth, and lowered its target for 2008 GDP growth from 8.5-9 per cent to 7 per cent.
16 comments:
Not only Cambodian smuggle fuel from Vietname, they also smuggle stolen cars from Thailand.
What a crook nation!
2:55 PM poor man, please be smarter with demand and supply.
Thais themselves stole thai cars to sell in Cambodia for own profits. Thai smuggle fuel from Malaysia, Thai fishmen are arrested almost everywhere, so what is Nation? Answer to yourselves, my poor man
Dear Khmer Friend,
These massage i wanted to shares with us, Muslim South Thailand, we need independent, thus we wanted you fight with siem , we will help you to put BOM in BANKOK, and all part of Thailand. Because we dislike this nation so much. They had killed our people. Actually they are from the Nanchao, in China, now they are here, later on they will go to malaysia and take singapore back. This nation never respect others people and stay in peace. Thai face is mixture of mongolia, their behavior as well. Thus we have to join in this war with khmer to pull the siem back to Nanchao one day. We get our land back to Malaysia.
Rebel in South Thailand
Don't worry a siem ! we are muslim we will take the bom for you soon . You will get it in Bangkok. I wanted to see you and all your familly died as your government killed our muslim people at Narativat....
Hello, you will get a big BOM from OSAMA BINLADEN ....hahahahaha Hoooo
How on earth exists a human being like you 2:55 PM?
How good is your nation? Can you tell me the history of your country? If you do not know I can give you some lessons. Perhaps you & your arrogant government have lived too long in peace that make you look down on the other nations. Thanks to let me know that I have money to buy cars from your thief people.
This is the world records of your country. The history of Thailand begins with the migration of the Thais from their ancestral home in southern China into mainland southeast Asia around the 10th century AD. Prior to this Mon, Khmer and Malay kingdoms ruled the region. The Thais established their own states starting with Sukhothai and then Ayutthaya kingdom.Following the decline and fall of the Khmer empire in the 13th - 14th century, various Buddhist Tai Kingdoms of Sukhothai, Lanna and Lan chang were on the ascendancy. However, a century later, Sukhothai's power was overshadowed by the new kingdom of Ayutthaya, established in the mid-14th century.
I welcome your Thai feedback..
Bravo Khmer combaters. Long live my beloved Muslim in the South of Siam, Myanma & Laos gather together to smack down this arrogant nation. They will lose faces to the international community.
A Khmer countryside youth live & educated locally.
Laos, Burma, Thai Muslims (from the South), and Cambodia, boy -- I could the resounding of impending collapse of the city of copious whores (of course, Thailand).
Khmer ultra-nationalist
Oh good, now we can get some Vietnamese customers in Cambodia because our Gas price is cheaper than theirs.
The current gasoline in Cambodia is US$1.45/liter. Which is cheaper?
That is 6100 riels/liter. Are you sure?
I guess it's KARMA.
Khmer thieves ride the stolen cars are now suffering the rising fuel price because the Vietnamese want to teach Khmers a lesson, not to smuggle their fuel.
3:35 PM
Pls be smarter with the demand and supply????
So you're speaking that with the high demand for stolen cars in your thief nation, so there's higher supply from Thais?
Your nation is still crook anyway,
isn't smart ass#3:35?
Your nation is still crook anyway,
isn't it smart ass#3:35?
This move from the Vietminh government is to curb their huge inflation at 25% and could reach 30%.
Good luck.
You stupid son of a thief! Can you understand we can not go in to your fucking countries to smuggle any thing from its! Are your government stupid or corrupted head who can not protect your fucking stupid people or what?
Like 3:35pm daid your mother fucker Thai and Viet son of thieves are stealing from your own countries to sell it in Cambodia you mother fucker should teach your children stop being thieves and whore that make the whold Asian look bad!!!!
the youn gov't need to stop hurting the poors by imposing high prices on gasoline. people on both sides of the borders have to make a living somehow and this is one of them. gov't should help, not make life harder for poor people along the borders. hello, wake up, people. i thought we are supposed to help each other, not make life difficult to people along the borders. thank you.
Yeah, but for government to help they have to have cashes. Any idea where they can get some? It doesn't grow on tree.
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