Petrol prices fall on environmental tax reduction

DNHN - Petrol prices tumbled more than VND1,000/litre on April 1 after environmental protection tax rates were axed by VND2,000/litre, which were in effect the same day.

RON 95 petrol dived by VND1,039/liter to VND28,153/liter after hitting a high of nearly VND30,000/litre 20 days ago. Meanwhile, E5 RON 92 petrol was adjusted down by VND1,021/liter to VND27,309/litre.

This is the second consecutive fall in petrol prices in the past 20 days. In the price adjustment 10 days ago, the government announced a decrease in petrol prices by more than VND600/litre.

However, the selling price of oil increased sharply despite a 50% reduction of the environmental protection tax. The selling price for diesel rose by VND1,450/litre to VND25,080/litre, while kerosene was capped at VND23,760/litre, up VND1,520/litre.

The fall in petrol prices came after the government decided to reduce environmental protection tax rates on petrol and oil.

Accordingly, although the prices of finished petroleum products in the Singapore market increased sharply, retail prices of petrol in Viet Nam could still cool down thanks to the reduction of the environmental tax by VND2,000/litre for petrol and VND1,000/litre for oil.

Without tax cuts, petrol prices should have increased by about VND1,000/litre.

The Government is said to consider cutting the import tax on petroleum products as an additional measure to intervene in case crude oil prices continue to fluctuate in the world market.

According to baoquocte.vn