The ministries of Finance and Industry and Trade unexpectely agreed for petrol retailers to increase prices by VND460 per litre to the record high VND24,570 from 8pm yesterday.

The retail prices of diesel and kerosene also rose by VND470 and VND420 per litre respectively to VND22,310 and VND22,020, while the price of mazut (low-grade fuel substitute) remained unchanged at VND19,070 per kilo.

In addition to the price hike, the ministries also decided to increase the money that kerosene and diesel retailers are allowed to use from the Price Stabilisation Fund to VND300 from VND200 per litre. The rates for petrol remained unchanged at VND300.

As of 5pm yesterday, petrol businesses including Petrolimex still affirmed that no decision on the petrol price adjustment had made yet and the Petroleum Market Watch continued to closely monitor the world market in case any adjustments were needed.

However, the fuel price hike was forecast to be unavoidable since world fuel prices had increased consecutively for the past few weeks. According to the Viet Nam Petroleum Association, petrol retailers reported losses of roughly VND920 a litre of petrol, VND744 for a litre of diesel and VND690 for a litre of gasoline. Fuel traders said that losses persisted for more than a week.

Money that fuel retailers are allowed to use from the Petrol Stabilisation Fund to offset their losses was not enough.

While not revealing the details of petrol and oil prices, the Petroleum Market Watch admitted that petrol retailers were reporting losses.

The latest petrol price hike, on June 28, saw prices surge by VND360 per litre to VND24,110.

(Source: VNS)