From 15.00 today [July 12], the retail price of biofuel E5 - RON92 rose by VND850 to around VND20,610 (US$0.9) per liter, and that of RON95 went up by VND870 to VND21,780 ($0.95) per liter.

The latest price adjustment marked the third consecutive price hiking since late May. Photo: The Hanoi Times

The move came following the latest review on petrol prices jointly released by the Ministry of Industry and Trade (MoIT) and the Ministry of Finance (MoF) on the same day, which was held every 15 days.

The latest price adjustment marked the third consecutive price hiking since late May and stayed in line with the global upward trend of petrol prices, resulting in a rise of VND2,190 per liter for E5, RON92, and VND2,250 for RON95.

Meanwhile, the price of kerosene was posted at VND15,500 ($0.67) per liter; diesel of VND16,530 ($0.72); representing increases by VND230-450 per liter; mazut of VND15,670 ($0.68) per kilogram, a rise of VND230 per kg.

Both the MoIT and the MoF decided to subsidize E5 and RON92 prices with finance from the petrol price stabilization fund with VND1,300 and VND350 for RON95; VND200 for diesel; and VN300 for kerosene and mazut.

“A large portion from the petrol price stabilization fund has been used in recent price adjustment to limit the price’s increase, especially as the pandemic remains severe in Ho Chi Minh City and southern provinces/cities,” noted the two ministries.

Without the fund, petroleum prices could go up by VND1,217-2,150 per liter in this price review, they noted.

Data from the Ministry of Finance revealed the petrol price stabilization fund as of March 31 stood at VND5.34 trillion ($232.5 million), while experts expressed concern the amount could soon be used up as petrol prices continue rising in the global market.

Acting Chairman of the Vietnam Petroleum Association Bui Ngoc Bao said the fact that countries around the world are gradually reopening their respective economy has been a key factor pushing up consumer demand for petroleum products.

A representative from a petroleum distribution company, who wished to remain anonymous, said under the government’s Decree No.83 on petrol and oil trading, traders are required to set aside VND300 from each liter to contribute to the petrol price stabilization fund before selling to customers.

“This means customers have to pay in advance for the fund which would later be used to keep petrol prices from rising above the acceptable level,” he told Lao Dong Newspaper.

“Once there is no money in the fund, there may be chaos in the market,” he warned.