Vietnam plans to allow fuel price adjustment every 5 days

TEMPO.CO, Jakarta – Vietnam is considering a new pricing mechanism to adjust fuel prices every five days instead of the current 10-day cycle to address a number of issues that have led to sporadic fuel shortages across the country in recent months, local media reported on Thursday, November 17.

This would help resolve the gap between fuel prices in domestic and international markets and be more in line with fuel trading activities, according to the local newspaper. Vietnam News reported, citing local experts and traders.

It is not possible for traders to maintain the current 10-day cycle as prices continued to fluctuate almost daily in the international market, said Vietnamese economist Vu Vinh Phu.

“We need to start making the transition to a fully market-driven mechanism, one where prices can be adjusted every five days, if not every day. This is in the interest of all stakeholders, including including merchants, retailers and consumers,” he said.

Shorter price cycles of three to five days at most were just the first step in bringing domestic fuel prices back to the same level as the international market, eliminating a lag that encourages some traders to hold onto stocks to wait. higher prices, according to the newspaper. said.

A recent fuel shortage in major cities across Vietnam, including Ho Chi Minh City and the capital Hanoi, led to a number of gas stations closing or limited sales.

Xinhua

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Eleanor C. William