Mr Dung made the decision at a working session with the Vietnam Petroleum Corporation in Hanoi on March 22. It was also attended by Deputy Prime Ministers Nguyen Sinh Hung and Hoang Trung Hai, leaders of relevant ministries and agencies and major petrol importers.

According to the PM, the global economic slowdown, increasing inflation and price hike have adversely affected the national economy. For a small economy like Vietnam, weaknesses in management and a big trade deficit have prompted commodity prices and the inflation rate to go up, thereby affecting production, economic growth and people’s living conditions.

“The top priority issue now is to control inflation, stabilise the macro economy and maintain high economic growth,” said Mr Dung.

He praised the Vietnam Petroleum Corporation for adopting immediate solutions aimed at ensuring an adequate supply of petrol and oil for the national economy amidst global market fluctuations. He asked the corporation and other petrol businesses to join hands with the Government to curb the spiralling inflation.

As petrol is a national strategic product, trading businesses should maintain the supply sources in all circumstances and gradually increase the reserves to meet the requirements for energy security, said Mr Dung.

The Government leader also affirmed that the State will manage this product in line with the market regulations. He asked the Ministry of Industry and Trade and the Vietnam Petroleum Corporation to gather opinions at the conference to finalise their petrol supply plans this year and for the coming years.

He noted that though many economic sectors are involved in petrol trading activities, the corporation still has the leading role. He asked relevant ministries and agencies to build a consistent and effective management and trading mechanism to ensure trading businesses operate in a stable and durable manner.

The PM suggested that businesses take the average global oil price of US$105/barrel as the benchmark for calculating the domestic petrol prices. As a result, the State is estimated to incur losses worth VND10 trillion and give financial support worth VND2 trillion to residents in disadvantaged areas this year.

He asked the Ministry of Finance to maintain the current petrol import tariff and the State Bank of Vietnam to ensure loans for petrol importers. He also asked the Ministry of Industry and Trade to balance petrol supply and demand, adopt measures to reduce the trade deficit, including reducing the import of unnecessary commodities such as complete knocked down vehicles and motorcycle spare parts.

Source: VOV