Vietnam Reduces Gasoline Prices After Oil Costs Fall

By Nguyen Kieu Giang

Aug. 14 (Bloomberg) -- Vietnam allowed fuel retailers to reduce gasoline prices by 5.3 percent from today to reflect lower international oil costs, the Ministry of Finance said.

The price of 92-RON gasoline, the most common grade used in the country, was cut to 18,000 dong ($1.09) a liter from 19,000 dong, and kerosene was cut to 19,000 dong from 20,000 dong, Deputy Finance Minister Tran Xuan Ha said by phone from Hanoi.

The decrease will ``reduce the cost of goods and ensure consumers benefit,'' the ministry said in a statement. Vietnamese fuel retailers are earning more as oil has fallen 18 percent from a record $147.27 a barrel on July 11 to trade at $116.84 at 11:42 a.m. in Singapore.

The Southeast Asian nation on July 21 allowed companies to raise gasoline prices by 31 percent and kerosene by 44 percent to take into account a 46 percent increase in the cost of crude oil in the first six months of 2008. The price increases triggered concern that inflation will quicken from 27 percent, and worsen living conditions for Vietnam's 85 million people.

To contact the reporter on this story: Nguyen Kieu Giang in Hanoi at giang1@bloomberg.net