Thanh Nien
Thursday, November 6, 2008
The rigidity of petrol prices in Vietnam has raised deep concern among the public, who feel they are being exploited by key players in the industry.
Domestic fuel prices on Tuesday stood at VND15,000 per liter, compared to US$2.53/gallon, or VND12,600/liter after dollar/gallon conversion, in the US.
At its recent peak price, domestic petrol stood at VND19,000/liter, while US prices only hiked up to VND18,300/liter, which had ignited a public outcry across America.
Now, petrol is being smuggled from Cambodia into Vietnam, instead of the other way around.
The public have sounded off on measures the government is using to control petrol prices and they are not happy.
In a market economy, it’s usual to give businesses the right to set prices. But important goods like petrol should be within the domain of governmental pricing policies.
Several times when global fuel prices dropped, Vietnamese consumers waited for similar decreases in domestic prices but saw none. Local authorities could only wring their hands and say businesses have yet to make a move.
And when gasoline businesses did reduce prices, they were mum on why the price slash was much less than the global price reduction.
It appears gasoline businesses are shortchanging consumers in a one-sided game whereby they receive government subsidies when faced with losses, but refuse to share gains with consumers when profiting from global price fluctuations.
By Dao Ngoc Lam
Thursday, November 6, 2008
The rigidity of petrol prices in Vietnam has raised deep concern among the public, who feel they are being exploited by key players in the industry.
Domestic fuel prices on Tuesday stood at VND15,000 per liter, compared to US$2.53/gallon, or VND12,600/liter after dollar/gallon conversion, in the US.
At its recent peak price, domestic petrol stood at VND19,000/liter, while US prices only hiked up to VND18,300/liter, which had ignited a public outcry across America.
Now, petrol is being smuggled from Cambodia into Vietnam, instead of the other way around.
The public have sounded off on measures the government is using to control petrol prices and they are not happy.
In a market economy, it’s usual to give businesses the right to set prices. But important goods like petrol should be within the domain of governmental pricing policies.
Several times when global fuel prices dropped, Vietnamese consumers waited for similar decreases in domestic prices but saw none. Local authorities could only wring their hands and say businesses have yet to make a move.
And when gasoline businesses did reduce prices, they were mum on why the price slash was much less than the global price reduction.
It appears gasoline businesses are shortchanging consumers in a one-sided game whereby they receive government subsidies when faced with losses, but refuse to share gains with consumers when profiting from global price fluctuations.
By Dao Ngoc Lam
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