The instruction, embodied in Official Dispatch 8984/BTC-QLG, is intended to help curb inflation.

The ministry has also changed the use of its petrol price stabilization fund so that retailers will now be eligible for compensation of between VND400 (US$0.02) and VND500 (US$0.03) per litre of petrol and oil instead of the previous VND500.

The Deputy Director General of Vietnam Import Export Petroleum Corporation (Petrolimex), Vuong Thai Dung, said the longer wait between price rises would cause difficulties for enterprises. “If world prices increase from 5-10 percent, businesses will run into difficulty as there is no mention of a financial loss in the yearly financial report,” he said.

The world price for oil was now from $80-86 per barrel and the petrol and oil trading companies were losing VND200-300 a litre. But Dung’s corporation had not yet raised the retail price of petrol and oil.

Prices fell on May 27 and June 8 so that the current domestic retail price for A92 petrol is VND15,990 per litre, for diesel VND14,400,kerosene VND14,700 per litre and oil – VND12,500.

VNS