Gasoline retail prices in 2007 would be adjusted according to world market prices when the Government would no longer subsidize petrol, announced the Trade Ministry recently.
The Government’s decision was a part of a general elimination of subsidies pursuant to the nation’s accession to the World Trade Organization and it would be necessary to have administrative systems in place, which allow petrol dealers to self-regulate the prices, according to Trade Minister Truong Dinh Tuyen.
The ministry reported that in the wake of soaring world oil prices, the average price of imported fuel this year has increased by 21% over 2005, soaring from US$438 to US$530 per ton.
The Ministry of Finance and the Ministry of Trade, both responsible for setting the nation’s retail petrol prices, have adjusted the import tax rate applied to petroleum products as well as the retail prices for many times this year to comply with the market mechanism.
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