Low fuel prices, according to the Minister of Industry and Trade, may inflict significant economic harm

DNHN - Responding to a press reporter in the National Assembly corridor on the afternoon of June 1 about the continually rising price of gasoline in recent years, Mr Nguyen Hong Dien, Minister of Industry and Trade, said that Vietnam's gasoline price is lower than the global gasoline price. Because of the price disparity, there is a scenario of petroleum smuggling in which domestic gasoline "flows" to other nations.

According to Mr Dien, it is not incorrect to expect that increasing fuel prices would raise the price of products, causing the economic recovery program to fail, but it must be realized that our country's economy has a very high openness manufactured mostly for export.

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If input prices are squeezed to cut output costs, they will fail to represent the true worth, harming the country's economy. "Vietnam produces things for sale to consumers and export. Are the goods defective, and the pricing does not represent the right value? "Mr Dien said.

The Ministry of Industry, Trade, and Finance have recently announced a price hike for RON 95 gasoline beginning at 3 p.m. on June 1. As a result, E5RON92 gasoline rose by 602 VND/litre and was sold for 30,235 VND/litre; RON95 gasoline climbed by 921 VND/litre and was sold for no more than 31,578 VND/litre. Oil commodity prices have surged. Kerosene costs 25,340 VND per litre, a 940 VND increase. Diesel oil has risen by 840 VND per liter to 26,390 VND per liter. Fuel oil costs 20,900 VND per kilogram, a 310 VND rise. This is the fifth price hike since April 21. The overall price of gasoline RON 95 rises by 4,260 VND per litre, while E5 RON 92 rises by 3,760 VND per litre.

According to Mr Dien, Vietnam is now a commercial partner of numerous nations and regions. If we push input prices, we will face anti-dumping, anti-subsidy, and possibly currency manipulation litigation. Furthermore, the scenario of smuggling fuel across the border happened.

"Meanwhile, to regulate gasoline costs, we must employ mechanisms such as taxes and levies, as well as increase market control, on the one hand. If the price continues to rise, we must implement a security strategy and assist the poor. Only then will it be in tune both inside and out. If just leaning in the direction of pushing prices to be very low, the country's economy would suffer greatly "Mr Dien noted.

PV

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