Vietnam’s Ministry of Finance Proposes Raising Fuel Import Tariffs

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Nov. 3 – Vietnam's Ministry of Finance has submitted a proposal that will increase fuel import tariffs to compensate state budget losses due to falling global prices of crude oil.

Crude oil is a staple Vietnamese export. According to VietNamNet, locally sourced crude oil output will remain at around 18 to 20 million tonnes annually.

The import tax on gasoline should be increased to 25 percent from 15 percent, diesel to 15 percent from 10 percent, and kerosene and mazut to 25 percent from 15 percent, Minister Vu Van Ninh was quoted by Thanh Nien News as saying during a National Assembly session.

Decreasing global crude prices has led to a VND36 trillion gap in government revenue compared to its forecast this year which was pegged at average crude price of $90 per barrel.

In July, the price of oil fell from US$147 a barrel to today's US$65. The government “expects crude prices in the last three monthsand in 2009 to stay at $70 a barrel,” Ninh said.