Vietnam reduces gasoline subsidy

Vietnam has reduced the amount of funds that oil companies can draw from the Oil Stabilization Fund for gasoline to VND200 (US$0.01) per liter from VND500 (US$0.03) per liter, the Ministry of Finance said on its website. The same decree also requires gasoline retailers to reduce retail prices of gasoline by VND500 per liter. As of May 27, the new retail price for 95 RON gasoline is VND16,900 (US$0.89) per liter and 92 RON gasoline at VND 16,490 (US$0.87) per liter. Domestic prices of other refined oil products, namely diesel fuel, kerosene and fuel oil remain unchanged. The finance ministry, together with the Ministry of Industry and Trade, has also left unchanged the amount of funds oil companies can draw from the Oil Stabilization Fund for the sale of diesel fuel and kerosene, which now stands at VND400 (US$0.02) for every liter sold. (June 1, 2010)