VietNamNet Bridge - The average petrol import price in the last six months was 40 percent lower than that of the same period last year, but the retail price has decreased by 20 percent only.

 

 

 

Thoi Bao Kinh Te Sai gon cited statistics released by the General Department of Customs (GDC), reporting that Vietnam had imported 1.4 million tons of petrol by the end of June 2015, worth $875 million. As such, every ton of petrol imported in June had the import price of $629.3. 

Meanwhile, in the same period last year, Vietnamese petroleum enterprises imported more than 1.32 million tons of petrol valued at $1.37 billion. As such, the average import price was $1.039.9 per ton.

The figures show that the average import price in the first six months of 2015 was 39.5 percent lower than that of the same period last year.

However, the domestic retail price has decreased only very slightly.

Petrol retails at VND20,380 per liter. The average retail price was VND17,940 per liter in the last six months. 

The price level was only 20 percent lower than the average retail price of 2014’s first six months (VND22,300 per liter).

The retail price even soared to a record high of VND25,640 per liter on July 7 after it moved up slightly step by step earlier this year. 

Only after that did the petrol price decrease as the world price fell

The unequal decreases in the import price and retail price has been attributed to the import tariff differences.

The import tariff once increased to 35 percent, which then made up 40 percent of the retail price. 

The import tariff is now 20 percent.

Meanwhile, Dat Viet quoted pricing experts as saying that the retail calculation methods applied by Petrolimex, the country’s largest petroleum importer and distributor, which holds 60 percent of the market share, and the MOF’s Price Control Agency, are “not transparent”.

Under Decree No 83, the calculation is the base price (CIF price + import tariff + consumption tax) x dong/dollar exchange rate + VAT + business expenses + pay to price stabilization fund + reasonable profit + environment tax + other kinds of tax and fee as stipulated by law. The price for calculation is the average import price in the last 15 days before the calculation. 

CIF price is understood as the world’s petroleum price + insurance premium + transport cost.

Dr Phan Duy Minh, a lecturer at the Finance Academy, commented that the CIF price is an illusion and the base price is unreasonable. 

The CIF price should have been defined as the real price at which petrol is imported to Vietnam plus other expenses. 

Dat Viet