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The Ministry of Finance has decided to slash petroleum and jet fuel import taxes to between 3 pct and zero per cent beginning from February 21 in order to support domestic petrol traders.

Petroleum import tax cut aimed to support domestic traders

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As a result, import tariffs on kerosene and diesel have been reduced from a previous 5 per cent to 3 per cent.

Import taxes on gasoline and jet fuel have been cut to zero per cent, compared to a previous 4 per cent.

The move is expected to assist local petroleum traders in their business amid rising global fuel prices in recent months.

Local market watchdogs said that the imported price of 92 octane petrol (A92) in the Singaporean market had increased to an average $125.94 per barrel for February deliveries, up 5.18 per cent compared to a month earlier.

This means that the retail prices of A92 should stand at VND23,332 ($1.11) per litre instead of current VND20,800 ($0.99).

With the rising import prices, several domestic petrol traders are bemoaning losses of over VND1,000 per litre of petrol sales.

Dang Vinh Sang, General Director of Saigon Petro Limited Company, said the firm is facing mounting difficulties.

According to him, Saigon Petro has to lower their commissions to agent to only VND350 per litre, instead of a previous VND650 per litre.

Several other traders, including the state-owned Vietnam National Petroleum Corp (Petrolimex), the country’s biggest petroleum trader, are also in the same situation with Saigon Petro.

Petrolimex Deputy General Director, Vuong Thai Dung, said the current retail prices of petroleum in the domestic market are between VND1,300 and VNDVND2,400 per litre lower than the imported prices depending on different products.