As estimated by Ministry of Finance, the adjustment of retail price of fuel an additional VND600-2,100 a liter in March 7th will impact on the CPI in this year.

Talking to reporters at the sideline of draft meeting of Personal Income Tax Law Amendment, Mrs Vu Thi Mai- Vice Minister from Ministry of Finance said that: the increase in fuel price of VND600-2,100 a liter in March 7th has been pushing inflation rate to increase further 0.85% in this year. It includes 0.24% for the first round (direct) and 0.61% for the second round (indirect).

Asked about the role of Dung Quat oil refinery on price stabilization in domestic market, Mrs Mai also answered that Dung Quat oil refinery provides around 30% fuel supplies for domestic market and its price is also following the market mechanism and world prices.

Answering the questions from reporters about price in world market was the same at USD 138 a barrel in March 2011 and March 2012, but in domestic market, price is different at VND 21,300 a liter and VND22,900 a liter respectively time to time, Mrs Mai said that world price at USD138 a barrel in last year was just price of a day and the average price (20 days) at that time was at USD118.7 a barrel, but now, the average price (February 5th to March 5th) was USD130,05 a barrel, the reason pushed retail price in domestic market to increase as of March 7th as a result.

To prevent other sectors on taking advantage fuel price increase to seek benefits by lifting prices of other goods and services reasonably, two ministries continue directing the inspection and control activities of the market in order to prevent them.
 

Xangdau.net