Government turns down oil firms’ demand for price hike

The Ministries of Finance and Industry and Trade have rejected a demand by oil firms to increase retail fuel prices but also exempted them paying a portion of their sales into the Price Stabilization Fund with effect from May 29.

The Ministry of Finance said it would cut tariffs on diesel products and extend repayment of a loan oil firms received from the Government to cover their losses last year when global crude prices surged past US$140.

The firms had asked the ministries to allow them to increase fuel prices by VND500 a liter since global prices have begun to rise again.

It had earlier allowed them to hike prices by VND500 on May 8.

Popular 92-octane currently retails at VND12,500 a liter, kerosene at VND12,000, and diesel at VND10,500.

In related news, crude oil surged to $63.45 a barrel, a six-month high, after Saudi Arabia, OPEC’s largest member, said it believed that the global economy has recovered enough to bear a price of $75-80 a barrel.

By Ng.Quang , P.A – Translated by Thuy Doan

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