Vietnam petrol price up with 31%
Last February, petrol prices in Vietnam were increased by 11% and diesel prices were increased by 36%. It is hard to believe but today the price for one liter of 92-Octane petrol (which I used for my motorbike) was increased from 14,500 VND yesterday to an amazing 19,000 VND (USD 1.10) today. This is a 31% increase. Diesel was raised with 14.3% to 15,950 VND.
Vietnam is trying to catch up with fuel prices in other countries but this sudden increase was not known by many people and comes as a shock. Fifteen years ago I used to work at a petrol station in Holland and if prices were going up by just 1 cent, Dutch people would start to panic already. Can you imagine what would happened if petrol prices in Holland increase by 31% overnight?
Of course, those who are living in Europe will argue that petrol is cheap in Vietnam but compared to salary levels petrol prices are expensive. This increase will push the inflation for July and August 2008 even further up.
Petrol prices in Vietnam are lower than those of their neighbors and therefore traders smuggle a lot of petrol
each day to those countries. The increased prices will not stop the smuggling but will at least reduce it.
And more news on petrol: Foster Wheeler Nergy Limited (UK) signed a contract with Vietnam’s Nghi Son RP Company to design the Nghi Son refinery and petrochemical (RP) project. The Nghi Son RP project (USD 6 billion investment) has a capacity of producing 200,000 barrels a day.
Technorati Tags: vietnam,petrol,inflation,price,Foster Wheeler,billion,investment,barrels,motorbike,diesel,cambodia,traders,smuggle
uk business newspetrol price up with 31% | Vietnam Fun, news, business, sports and events