CITA letter sent to Prime Minister Hun Sen on High Cost of Gasoline

Dear All,

Yesterday, CITA sent a letter to Prime Minister Hun Sen asking for intervention of high cost gasoline.

Please read the letter below for more information.

Best Wishes,

CITA administrator

Oil import tax under fire from opposition

Wednesday, 29 December 2010
Chun Sophal
The Phnom Penh Post

CAMBODIA’S tax on oil imports came under fire from opposition members as too high yesterday, but government officials maintain the duties are a necessary source of income for the national budget.

The Kingdom will have difficulty competing with its neighbours if it does not cancel or reduce rates on the oil import tax, said Sam Rainsy Party senator Yim Sovann.

High import taxes have caused oil prices to increase on domestic markets compared to countries like Thailand and Vietnam, which encourages illegal smuggling, he said.

“The cancellation of this import tax will result in a loss for the national budget,” he said. “But we will gain benefits for our economy and people because we can produce more finished products at low prices for exports to international markets.”

The government collects 1,200 riel (US$0.30) per litre of import oil, according to Yim Sovann. Higher oil prices increased the costs for Cambodia’s goods, making it challenging to compete with products from other countries.

“We cannot compete with products from other countries as long as we cannot reduce the difficulties stemming from [high] oil and electricity prices,” he said.

However, government officials said the revenue was crucial for the national budget.

Kong Vibol, secretary of state at the Ministry of Economy and Finance, told the National Assembly yesterday that oil import revenue increased to US$250 million this year, a 19 percent increase on 2009.

“We will lose about $250 million if we cancel the full oil import tax as requested by Senators from the opposition party,” he said.

SRP MP Son Chhay criticizes rise of gasoline price

17 August 2009
Everyday.com.kh
Translated from Khmer by KI-Media

On 15 August, SRP MP Son Chhay criticized the government by saying that it does not have a clear policy nor a clear goal to prevent the constant rise of gasoline price in Cambodia. Son Chhay said: “The rise and drop of gasoline price depend on what the prime minister [Hun Xen] says. Sometimes, when he issues a warning then the price would drop. Recently, the prime minister said that the price of gasoline in Europe, France, increases also, then the price [of gasoline] went up further. There must be a strict policy set up, the price increase or drop on the international market varies by $3 to $5 per day, this is not a factor for the gasoline retailers to increase the price anyway way they want.” Son Chhay also said that, when the price of a barrel of oil on the international market fetched $160, the price of gasoline was 5,600 riels ($1.40) per liter, but when the price of a barrel of oil drops by half to less than $70 per barrel, the price of gasoline in Cambodia still remains at 4,200 riels ($1.05) per liter.

Gasoline price to continue to rise

31 July 2009
By U. Ch.
Cambodge Soir Hebdo
Translated from French by Tola Ek
Click here to read the article in French

According to Hang Chuon Naron, the general secretary of the ministry of Economy and Finance, Cambodia must focus on energy saving without relying on oil revenue.

The price of oil should continue to rise slightly in the upcoming months, Hang Chuon Naron told CTN on Friday 31 July.

When asked on the reason why the retail price of gasoline in Cambodia remains high while the price of oil dropped on the international market, Hang Chuon Naron indicated that the shipping delay and the gasoline stock quantity [in Cambodia] made it impossible for a faster change in gasoline price.

“Furthermore, the exchange rate and the fluctuation of the riel with respect to the US dollar also explain that the price of gasoline does not drop quickly,” he said.

In the future, the price of gasoline should increase slightly still “due to the growth of the US economy,” Hang Chun Naron added.

According to him also, it is unlikely that oil production in Cambodia will change the situation: “The first barrels of oil will not be produced until 2015 and these oil fields are not that important. They should bring in about $100 million per year, i.e. 14 times less than what the tourist industry brings in.”

Hang Chuon Naron added: “We must be realistic. People must save energy and they should use transportation means that use less gasoline.”

When asked about the reason why the retail price of gasoline is cheaper in neighboring countries, Hang Chuon Naron indicated that Thailand and Vietnam had subsidized this sector for a long time: “However, this policy reaches its limits. In Cambodia, the government choice is to help the population with public policy for construction, education and help provided to needy people.”

Cambodian oil price slightly down upon PM appeal

PHNOM PENH, Jan. 8 (Xinhua) -- Cambodia's major fuel retailer Sokimex has slightly decreased oil price at its pump stations after Prime Minister Hun called for such action on Tuesday, national media said on Thursday.

By Wednesday, the Sokimex's petrol price was 0.69 U.S. dollar per liter for regular and 0.71 U.S. dollar for premium, said English-language daily newspaper the Phnom Penh Post.

On Tuesday, Hun Sen appealed to the local fuel retailers to further drop oil prices because those at the international market have decreased for a long time.

"You should make oil prices even lower as a New Year gift," he said.

On Tuesday, at most pump stations in Phnom Penh, high-quality gasoline sold at 0.74 U.S. dollar a liter, and general gasoline 0.72 U.S. dollar.

During the past two months, Hun Sen had already asked local retailers to drop oil prices for two times.

The oil price here was once up to 1.50 U.S. dollars per liter at its historical height in 2008.

Rule by threat: When Hun Sen in angry ... gasoline price will come down or else ...

Petrol prices to drop sharply, or else: PM

Tuesday, 23 December 2008
Written by Chun Sophal and Hor Hab
The Phnom Penh Post

"I have had enough with the high petrol prices, and I will meet with all companies."

Prime Minister Hun Sen threatens to summon petroleum company heads, saying falling oil prices are not being reflected at the pump
OIL companies are facing renewed pressure to cut pump prices in line with falling international crude following another scathing speech by Prime Minister Hun Sen on Monday.

The premier lashed out at oil importers and threatened to summon company heads unless he saw immediate action being taken to bring prices down at the pump.

"I have had enough with the high petrol prices, and I will meet with all companies at once," said Hun Sen.

He accused the companies of price-gouging in a speech that at times sought to portray the prime minister as the sole impetus behind falling prices.

"I wonder about the oil price. When I tell petroleum companies to decrease the price, they decrease it, but when I don't, they don't decrease it," Hun Sen said.

International crude oil has fallen drastically from a record US$147 in July to about $43 on weaker demand and a slow global economy.

Local pump prices have fallen as well, albeit at a slower rate, from a record 5,750 riels in July to 2,950 currently at Sokimex and Tela, and 3,050 at Total and Caltex.

"We understand that [the companies] have stocks of imported oil, but companies should not use this as an excuse to keep the price high," Hun Sen said.

High petrol prices helped drive the Kingdom's inflation rate to more than 30 percent this year. Since July, the prime minister has twice called on companies to cut prices in an effort to curb inflation and reduce countrywide transport fees.

The Ministry of Economy and Finance has met with the companies six times since July to press for price cuts, but the declines have been small.

The Opec factor

Heu Heng, deputy director general of Sokimex, welcomed the prospect of a face-to-face meeting with the prime minister.

"We respect the government's stance and we will cut the price if the international market price stablises," Heu Heng said.

But he warned that market interventions by Opec could boost prices, pointing to the oil cartel's decision to cut output by 4.2 million barrels per day in an effort to meet its target price of US$65 to $75 per barrel.

"Sokimex is the leading imported oil company that sells oil at the lowest price [2,950 riels per litre], and prices will decrease more in the future," Heu Heng added.

Opposition lawmaker Son Chhay said Monday he supports Hun Sen's efforts and hoped oil companies would heed the government's calls.

"The government should not allow imported oil companies to sell based on their self-interest. They have a history of increasing the price abruptly when it is high, while failing to cut it when it declines," Son Chhay said.

Kang Chandararot, director of the Cambodia Institute of Development Study, said he is not sure what pump prices should be but said they should correlate with the international oil price.

"The government must try to curb the local price to match with world crude oil price," he said. "We need more documents from the oil companies."

Petrol companies slammed

A supply truck pulling into a Sokimex station in Siem Reap. Sokimex is Cambodia's largest petroleum supplier. (Photo by: Tracey Shelton)

Wednesday, 05 November 2008
Written by Chun Sophal and Nguon Sovan
The Phnom Penh Post

The minister of finance says local petroleum suppliers are keeping prices artificially high, but companies say they're just taking a practical approach

THE government has lashed out at Cambodian petroleum companies, accusing them of price gouging as a Monday deadline for petrol prices at the pump to drop to 4,000 riels (US$1) a litre passed unmet.

"Buyers should buy oil from suppliers that sell at cheaper prices," Finance Minister Keat Chhon told the Post, adding that he felt companies were colluding to keep pump prices artificially high.

Oil suppliers agreed during a meeting with finance officials Thursda7 to drop prices to 4,000 riels per litre by Monday if international crude prices dropped to $70 per barrel or lower.

On Tuesday, international crude closed at $63.80 per barrel, and petrol prices in Cambodia remained above 4,000 riels.

Keat Chhon said companies were employing dubious marketing gimmicks - such as claiming that their oil was higher quality than the competition - to dupe consumers.

"I'd like to send a message to all consumers not to be cheated by suppliers because their oil has been imported under inspection," he said.

"The price and quality are the same as other oil suppliers. So, if they say their oil is higher in quality than oil from other suppliers, this is incorrect," he said.

Despite their promises last week, Caltex and Total were both selling petrol at 4,200 riels per litre for regular and 4,300 per litre for super, as of Tuesday - higher than competitors Sokimex and Tela, which were charging 4,100 and 4,200, respectively.

The Total advantage

Stephane Dion, managing director of Total, wrote by email on Monday that Total offers high-quality fuels from reputable suppliers.

"Quality is consistent and smuggled products are absent from Total service stations. Total also prides itself in delivering the exact quantity of fuel (ie, one litre is exactly one litre) and superior service."

He added that despite this product and service offer, pump prices at Total service stations are not materially different from competitors' prices.

"Based on our daily price checks, since the beginning of 2008 the average price differential between Total and local companies has been lower than one percent."

He said Total pump prices are clearly displayed on totems and pumps at all times, and customers are free to select their service station or brand, adding that Total has been continuously passing over to customers drops in the international oil prices.

Nay Chamnab, a communications specialist with Caltex, declined comment on the quality of Caltex petrol compared with that of other companies, but told the Post Tuesday that "the fluctuation of international crude and finished product prices will inevitably affect the local retail pump prices."

Nay Chamnab said the timing of pump price adjustments depends on a combination of factors, including currency exchange rates, inventory levels, freight rates, product quality premiums, refined product prices, market demand and competitors' reactions to market forces.

"We firmly believe in offering our products to our customers at fair and reasonable prices," she said.

Heu Heng, deputy director general of Sokimex, said Monday that his company will keep prices at 4,100 riels per litre for regular petrol until Friday this week, after which the company will reconsider dropping to 4,000 riels.

"I can't explain further the company's decision to keep prices where they are, as this is an internal matter," said Heu Heng. "We will try to adjust to revenue and not take advantage of consumers."

Chhon Oun, managing director of Tela, said Monday his company is currently watching the international oil market closely.

"We can't drop oil prices too fast because prices on the international market have changed quickly and are difficult to predict," he said. "We will drop prices based on practical considerations."

Gasoline: Retail price can’t catch up with oil price drop on the international market

Saturday, October 18, 2008
By Ros Dina
Ka-set
Unofficial translation from French by Luc Sâr
Click here to read the article in French
Click here to read the article in Khmer

Keat Chhon, the minister of Economy and Finance, recognized at the end of the week that the drop of the retail price of gasoline in Cambodia during the last few weeks is at a much slower pace than the drop of oil price on the international market. According to Keat Chhon, price adjustment could take several weeks to catch up.

Last week, the price of gasoline at retail pump stations would have dropped by 3%, according to Keat Chhon, whereas the drop of the price of oil was actually 6% during the same period of time.

“Between the oil refinery and the retail purchase in Cambodia, it can take up to two months. Imported gasoline purchased now is meant to be sold in two months, not immediately,” Keat Chhon justified. He also said that he is “closely following, each week, the evolution of price among the local gasoline distributors.” “The ministry of Finance will push for a lowering of price if it is not the case,” he added.

For Keat Chhon, this also shows “that there is still no real competition” on the Cambodian market, a situation which he deplores.

Cambodia is “fiscally vulnerable”, according to the World Bank

11-10-2008
Cambodge Soir Hebdo in English
Click here to read the article in French

Twenty eight Third World countries will have to be “rescued”, according to Robert Zoellick

The financial crisis risks having an impact of the Cambodian economy, states a report of the World Bank, published on Thursday 9 October and designating 28 countries which are “vulnerable” to the inflation of food and oil products and to the repercussions of the financial crisis.

Amongst those 28 countries are Cambodia, Jordan, Lebanon, Jamaica, Eritrea, Sri Lanka and Nepal.

According to this report, most of these countries only have limited possibilities when it comes to requesting new loans allowing them to face a price increase of the food and oil products.

These countries, of which many are trying to improve the use of their natural resources as the prices are escalating, also face the risk of being affected by the “Dutch syndrome”: a strengthening of the national currency which is detrimental to the country’s productivity and to its local manufacturing industry.

According to the director of the World Bank, Robert Zoellick, the growth of developing countries could decrease to 4%, far from the average 6% observed in April 2008.

These countries often reacted to the price increase by subsidising oil products and organising free food distribution, putting their budgetary balance at risk.

According to the World Bank, a drop in the exports towards rich countries in recession could lead to the closure of companies and to a possible crisis within the bank sector.

Inflation puts strain on nation's fishermen

Fish catch for making prahok

Wednesday, 08 October 2008
Written by Chhay Channyda
The Phnom Penh Post

SOARING food and fuel prices are eating away at the always-slim profit margins of Cambodia's fishermen, prompting fishing communities across the Kingdom to address the issue at a workshop Tuesday.

More than 200 fishing communities along the Mekong River, the Tonle Sap and coastal areas were represented at the two-day workshop, organised by the nongovernmental organisation Fisheries Action Coalition Team (FACT).

Catches have declined to about 5kg or less per day, which is not enough to support a family, Oum Meng, a representative from Kampong Thom province, told the Post.

He said the price of goods has risen sharply but the prices fishermen are getting for their hauls are not increasing commensurately. He added that high petrol prices were making it harder for fishermen to earn a living.

"The price of gasoline should be reduced to 3,800 riels or 4,000 riels," he said, adding that as the price of gas globally had dropped, the price at the pump in Cambodia should fall.

Ly Vuthy, chief of the community fishery development office at the Fishery Administration, acknowledged the concerns of the nation's fishing communities.

"It is a problem to be addressed," he said, adding the government is looking into the case and will act soon.

Fuel Importers Agree To Nudge Prices Down

Fuel companies have agreed to lower fuel prices to around 5,000 riel per liter, about $1.25.

By Ros Sothea, VOA Khmer
Original report from Phnom Penh
22 September 2008

Cambodia's main fuel import companies have agreed to reduce the price of fuel by 100 riel, about $0.02, per liter, but economists said last week the decrease doesn't match the fall in global prices.

The lower costs decided at a meeting held by the Ministry of Economy and Finance on Friday, following a call by Prime Minister Hun Sen for a reduction in costs.

"We reached our goal," Finance Minister Keat Chhon said Friday. "From Monday on, oil companies will reduce the fuel price 100 riel per liter. So it will be reduced from 5,000 or 4,900 riel," about $1.25.

Fuel prices directly affect many Cambodians, but the prices are also a driving factor in high inflation in recent months.

On Saturday, global crude oil was at $104 a barrel, down 30 percent from its highest point, $147. But Cambodia's fuel costs have only decreased about 10 percent from their highest prices, which matched the global surge.

"Our fuel price doesn't equal other markets," said Chap Sotharith, an economist at the Cambodian Institute for Cooperation and Peace. The global price "already had a 30 percent decrease, but ours has decreased only 10 percent."

A decrease of 30 percent in Cambodia would mean prices as low as 3,800 riel, or $1.90, said Sok Sina, an independent economist.

Chhun Oun, managing director of the fuel company Tela, disagreed, saying the current Cambodian prices already match global prices.

Cambodia has at least seven local and foreign fuel importers, but most of them before Friday had been reluctant to lower costs.

Asked Friday whether the cost could be lowered more, Seng Chhung Ly, chief of retail network for France's Total, said, "I don't know. We have to wait and see together."

Critics say the price in Cambodia stays high because the major fuel companies cooperate to keep prices inflated.

"The situation in Cambodia seems to be one of the underdog against oil companies," said Chan Sophal, president of the Cambodian Economic Association. "The four or five companies together limit the price to look like only one. In this situation, the consumers are the losers and the sellers are the winners."

Keat Chhon dismissed such criticisms, saying that during a period when global oil prices rose 80 percent, Cambodia's prices rose only 40 percent.

Meanwhile, he said, the government has subsidized fuel costs more than $260 million since January and plans to spend another $30 million a month through the end of the year.

Thank you, Comrade Keat Chhon, for obtaining the penny drop in gasoline price!

Gasoline price to drop by 100 riels ($0.025) in Cambodia on 22 September

19 Sept 2008
By Leang Delux Cambodge Soir Hedbo
Translated from French by Luc Sâr Click here to read the article in French

Keat Chhon, the minister of Economy, obtained from the distributors a lowering of the retail price of gasoline.

To save money, it is better off to wait until Monday morning to fill in your tank. By then, the current retail price of gasoline will drop from 5,000 riels ($1.25) to 4,900 riels ($1.225), this starting from next week.

In the morning of Friday 19 September, Keat Chhon, the minister of Economy and Finance, was able to request this price drop from the distributors during a meeting at his ministry. The roundtable meeting took place only four days after Prime minister Hun Sen called for a push in the lowering of fuel price which started in the last few weeks.

“Our efforts to lower the price of gasoline was not done to attract popularity, but to better control inflation,” Keat Chhon explained while indicating that, since the beginning of the year, the State lost an earning of $263 million from imported gasoline tax in order to rein in the increase of gasoline price.

During the first six months of the year, fuel consumption in Cambodia has increased by 24%.

Petrol smuggling [from Vietnam to Cambodia] reduces by 80%

14/08/2008
Viet Nam News (Hanoi)

VietNamNet Bridge – Petrol smuggled via borders has reduced by 80 per cent, said deputy director of the Market Watch Department (under the Ministry of Industry and Trade) Pham Quang Vien.

Petrol smuggling has significantly reduced but it still occurs across Vietnamese-Cambodian border areas.

Vien said that though some residents in border areas still brought petrol over the Cambodia border at night, the amount of smuggled petrol had dropped significantly since earlier this year.

He said this was the result of guidelines by the Government’s Steering Committee for anti-smuggling, counterfeiting and trade fraud, and effective co-ordination between customs, border guards, police and market watch officials to synchronously implement solutions preventing petrol smuggling.

The solutions included that petrol stations along border areas could only sell fuel to people travelling in vehicles, not to people with just barrels or oil cans. Authorities would close petrol stations that were unqualified to do this business, or that exported petrol illegally. New petrol stations in the south-west border region would not be allowed to open in order to prevent petrol smuggling in those areas as well.

Currently, petrol stations in border areas are open from 6am to 6pm only, following the times that border gates open and close. From early July, border stations began selling petrol to vehicles migrated into Vietnam at international selling prices.

Vien said that in the first six months of this year, petrol sold at petrol stations in five southwestern provinces had remarkably reduced compared to 2005, when petrol smuggling was at its height.

For example, Kien Giang sold 24,000 litres in the first half of this year, compared to more than 142,000 litres in 2005. An Giang Province sold 3,800 litres compared to 42,000 litres in 2005, he said.

However, though Viet Nam had increased its petrol prices on July 21, these prices were still lower than retail petrol prices in Cambodia, he said. If price imbalances still existed, authorities would still have to fight against petrol smugglers, he said.

At the end of last month, it was reported that the smuggling of fuel from Vietnam over the Cambodian border had continued despite the recent petrol price increase.

Fuel prices in Cambodia increased to US$1.5 per litre, VND5,000 ($0.3) higher than in Vietnam.

Most of the smuggling took place at night and sometimes during the day, usually by motorboat. Canvas covers hid the plastic containers that contained the fuel, police said.

In Kien Giang Province, some smugglers pour fuel into nylon bags and lay them on board to transport them more conveniently.

During the flood season, smugglers often take advantage of the local terrain to escape anti-trafficking forces.

Price of gasoline in Phnom Penh as of 13 August 2008

Comment by P. Virak
Posted online

People sold their land and real estates to buy motorcycles, mainly made in Korea, Vietnam, etc..; cars, trucks and luxury vehicles consume tons of gas... Gas price is out of control... Cambodian workers work for the price of gas... and a few bucks left is for food... If they get sick, death is awaiting ...

Cambodia's land and real estate can be disappeared into thin air via the tail pipes of Korean mopeds, trucks and luxury vehicles...

Sokimex - a corporation founded [by Sok Kong] in 1980 with close ties to the CPP government. Aside from the Angkor ticket concession, Sokimex is a petroleum company, and is a supplier to the government of military uniforms, medicines, and food for the military. It is also involved in import-export, rubber, transportation, and real estate. Congratulations to Sok Kong who is very proud to be a successful Vietnamese in Cambodia. (Caption and photos by P. Virak, orignally posted on Camdisc)
Price of gasoline at a Total station
Price of gasoline at a Telsol station

Big brother Vietnam not too happy to subsidize gasoline price for Cambodia

Smugglers first at border gas stations

Friday, June 20, 2008
Thanh Nien News

In a district near the Cambodian border, many gas stations are only open at night.

They are closed during the day because they want to keep their gas for smugglers who then resell it in Cambodia at higher prices.

Tran Van Luan, a resident of Kien Luong District of Kien Giang Province on the

Vietnamese side of the border, said gas stations didn’t want to sell to locals but those smuggling fuel to Cambodia could buy as much as they wished.

Smugglers use boats to transport fuel to Kampot Province in Cambodia, where the price of one liter of gas is VND3,000 (US$0.18) higher than that in Vietnam.

They said diesel, which is priced VND13,9000 in Vietnam, sold like hot cakes in Niec Leuong District in Cambodia at $1 a liter.

They could pocket a profit of 12 US cent for a liter.

Fuel smuggling is also a problem in other provinces along the border with Cambodia.

At An Binh border gate in An Giang Province, 30-liter cans of gas are loaded onto boats every day, bound for Cambodia’s Kandal Province.

Many boats also pass by the stations along the province’s Vinh Te Canal to buy gas and bring it to Cambodia’s Takeo Province.

Along So Thuong River between Dong Thap Province and Cambodia, dozens of gas stations are visited by boats that transport fuel to Prey Veng Province every day.

Last week, the market management unit of Kien Giang Province caught the owners of two gas stations as they prepared to illegally transport 7,000 liters of gasoline to Cambodia.

The arrests have not seemed to deter the many others involved in fuel smuggling.

5,500 riels per liter of gasoline

A woman delivers gasoline to customers by a motorbike from a roadside store selling gasoline in Phnom Penh, Cambodia, Wednesday, June 11, 2008. The current price of gasoline in Cambodia stands at 5,500 riel (US$1.25; euro.8) a liter. (AP Photo/Heng Sinith)

VN bleeding by high price of fuel in Cambodia ... gasoline is smuggled to Cambodia rather than sold to Vietnamese

Carrying petrol to Cambodia

06/12/2007
Oil and petrol ‘bleed’ through border gates

VietNamNet Bridge – A lot of petrol and oil is being illegally exported to Cambodia, as the petrol price there is VND3,000/litre [~$0.19] higher than that in Vietnam.

Cambodians dry up the well

A resident in the southern province of An Giang said the petrol price in Cambodia is $1/litre and the oil price is nearly the same, consequently, Cambodians have been crossing the border to purchase cheaper petrol they can sell at home for a tidy profit.

On So Thuong River in Dong Thap province, many boats can be seen carrying petrol and DO oil to Prey Veng province in Cambodia.

Meanwhile, Vietnamese farmers cannot purchase oil for their pumps because filling stations and privately owned petrol shops only want to sell oil and petrol to Cambodians who will pay more.

A lot of Vietnamese farmers now have a new job: they carry petrol and oil for Cambodians. On average, an ex-farmer may earn VND40-50,000 if they carry 60 litres of petrol or oil. Meanwhile, Vietnamese tobacco smugglers have shifted to the oil trade which is much more lucrative.

Tran Minh Tien, Head of the Ha Tien Border Gate’s Customs Agency, acknowledged that his agency cannot stop the illegal export of petrol.

He said that there are many reasons that encourage illegal petrol exports. While the petrol in Vietnam is cheap thanks to the Government’s subsidization scheme, the price in Cambodia is much higher as it follows global price fluctuations.

There are numerous filling stations along the N1 road in Kien Giang province, but the stations are not open during the day. Nguyen Van Na, a farmer in Tan Khanh commune, complained that he could not buy oil for his harvester, saying that petrol distributors only work in the evening and only sell petrol to Cambodians.

The An Giang Market Control Taskforce said that it has discovered several illegal export rings so far this year, seizing nearly 30,000 litres of oil, while Kien Giang and Dong Thap provinces seized 5,000 litres. However, Mr Tien said this figure is insignificant compared to the amount of illegally exported product, adding that their confiscations are just the ‘tip of the iceberg’.

“Our staff is too small to deal with the strong force of illegal exporters,” Mr Tien said.

The Ministry of Finance’s latest move was to issue the decision to increase A92 petrol retail prices on the domestic market by a maximum of VND 1,700 a litre and oil prices by VND1,500-VND1,600 a litre to VND13,000/litre. Vietnam announced it would float the petrol price back in mid 2007 and the Government subsidy programme is essential to curbing the inflation rate.

Source: Tuoi tre