Vietnam proposes new oil pricing scheme

Vietnam’s Finance Ministry has proposed a scheme that would allow petroleum product distributors to set retail prices within a range allowed by the government. Currently, the government has to approve any price changes. A more flexible fuel pricing system would allow distributors to recover losses incurred from loan repayments, as well as discourage smuggling which has risen due to the huge price disparities between Vietnam and neighboring countries. (July 15, 2009)