Vietnam National Petroleum Group Petrolimex officially adjusted the highest gasoline price up to 31,870 VND / liter.
According to the latest update of Trading Economy, the world oil price today on May 24, 2022 is at 109.6 USD/barrel. This price has decreased by about 9% compared to the time when the world oil price peaked at 119.3 USD/barrel on March 8, 2022. The latest update on the world average gasoline price reached 1.36 USD/liter on May 16, 2022, of which the cheapest is Venezuela with 0.022 USD/liter and the most expensive in Hong Kong (China) when the price per liter is gasoline reached 2,897 USD.
From 0:00 on May 23, 2022, gasoline prices in Vietnam have had their 9th increase since the beginning of the year. Although in the past 5 months, there were also 3 downward adjustments, but gasoline prices still closed at a high level, averaging more than 30,000 VND/liter. The prices of popular gasoline products such as RON 95-V, RON 95-III, E5 RON 92-II in region 1 are 31,250 VND/liter, 30,265 VND/liter, and 29,630 VND/liter, respectively. The price will be about 600 VND/liter higher in zone 2.
Regarding the control of gasoline prices, Vietnam has used tools such as reducing environmental tax by up to 50%, applying reserve tools in terms of policy space, but the price drop of gasoline is still small. drop. Currently, each liter of gasoline is carrying four taxes including import tax, value added tax, excise tax and environmental protection tax. As follows:
Import tax 8%
Decree No. 57/2020/ND-CP dated May 25, 2020 of the Government stipulating the MFN import tax rate for gasoline is 20%. Regarding special preferential import tax (FTA), gasoline products (including E5, E10) have an FTA import tax rate according to ATIGA, VKFTA Agreement is 8%, VNEAEU Agreement is 8.8%- 8% and the ACFTA Agreement is 20%. Currently imported petroleum is mainly from ASEAN countries, Korea with FTA import tax rate of 8% for gasoline and 0% for oil.
10% value added tax
Petrol is currently subject to a value-added tax of 10%. Petrol cannot reduce value added tax to 8% like other commodities according to Decree 15/2022/ND-CP dated January 28, 2022.
10% excise tax
Currently, only gasoline products are subject to excise tax at the rate of 10% (no excise tax is collected on oils of all kinds). Particularly, E5 biofuel has the excise tax rate of 8% and E10 gasoline is 7%. Regulations under Decree No. 14/2019/ND-CP amending and supplementing a number of articles of Decree No. 108/2015/ND-CP dated October 28, 2015.
Environmental protection tax 2,000 VND/liter
Environmental protection tax is specified in Resolution No. 18/2022/UBTVQH15 on environmental protection tax rates for gasoline, oil and grease. Accordingly, 50% reduction of environmental protection tax on gasoline (except ethanol), diesel oil, fuel oil, lubricants and grease from April 1, 2022 to the end of December 31, 2022. Specifically, each liter of gasoline bears about 2,000 VND/liter of tax.