Vietnam Slashes Petroleum Retail Price

Vietnam lowered its retail price of standard petroleum by nearly 5.3 percent from Aug. 14 due to dropping world oil prices, the country's Finance Ministry annouced Thursday morning.

The retail price of A92 petroleum, most commonly used by vehicle drivers in Vietnam, declined to 18,000 Vietnamese dong (VND) (nearly 1.1 U.S. dollars) per liter from previous 19,000 VND (over 1.1 dollars). On July 21, Vietnam raised the price by 31 percent, mainly to lower state subsidy and prevent smuggling of the product to neighbor countries.

Vietnam, adjusting retail prices of petroleum products five times last year, has so far this year raised the prices twice and lowered once.

Mainly due to fluctuations in world oil prices, Vietnam adjusted its retail prices of petroleum products three times, including two hikes and one decrease in 2005; four times (two ups and two downs) in 2006, and five times (three ups and two downs) in 2007.

Vietnam imported roughly 8.3 million tons of petroleum products totaling nearly 7.8 billion dollars in the first seven months of this year, posting respective year-on-year rises of 11.4 percent and 90.7 percent, according to the country's General Statistics Office.

Meanwhile, it exported 7.8 million tons of crude oil worth 6.8 billion dollars, down 12.1 percent in volume, but up 52.2 percent in value.