Vietnam Lowers Gasoline Prices as Global Oil Costs Decrease

By Nguyen Dieu Tu Uyen

Nov. 8 (Bloomberg) -- Vietnam's government has allowed state-run fuel retailers to cut gasoline prices by about 7 percent, in line with the decline in the global oil market over the past month, the nation's largest fuel importer said.

``The Ministry of Finance has told us to reduce by 1,000 dong per liter,'' said Vuong Thai Dung, deputy chief executive officer of Vietnam National Petroleum Corp., which supplies almost 70 percent of the country's demand.

The price of 92-RON gasoline, the most common grade used in the country, will be lowered to 14,000 dong ($0.82) a liter from 15,000 dong and that of kerosene to 14,500 dong from 15,500 dong, Dung said by telephone from Hanoi. Diesel prices will also be cut by 1,000 dong a liter, he said. The new prices are effective from noon today.

The Southeast Asian country last month cut gasoline prices four times to curb inflation and reduce the cost of doing business. The government this week pared its 2008 economic growth forecast to 6.7 percent from 7 percent, and set a lower target of expansion for next year at 6.5 percent.

Benchmark crude oil in New York plunged 32 percent over the past month, trading at $61.04 a barrel yesterday. Prices have declined 58 percent since reaching a record $147.27 a barrel on July 11.

To contact the reporter on this story: Nguyen Dieu Tu Uyen in Hanoi at uyen1@bloomberg.net