Vietnam’s Ministry of Industry and Trade to change petrol price calculation methods
Vietnam’ Ministry of Industry and Trade (MoIT) has asked for the prime minister’s approval to amend the existing methods used to calculate local retail prices of petroleum products. In a recent report on the implementation of Decree No. 84 on petroleum trading, the ministry explained that the current low prices are hurting fuel traders because adjustments to domestic petrol prices are being made slower than fluctuations in the world market; and retail prices are lower than import rates, which results in mounting losses for traders. The ministry further explained that some elements that are used to calculate petroleum prices are inadequate based on the prevailing circumstances. It was revealed that 2009 figures were used to estimate business expenses for traders, which were calculated based on salary, materials and other financial expenses, despite the fact that the costs for all of these parameters have increased considerably. (May 2, 2012)