The prices of cooking gas and petroleum will be regulated based on market prices, affordability, and inflation concerns, an official has said.

Deputy Minister of Finance, Nguyen Thi Mai

Nguyen Thi Mai, Deputy Minister of Finance, said at the Government’s regular meeting-February 2012 that gasoline prices would be regulated in accordance with Government Decree 84 in the time to come.

As a result, an increase in the gasoline prices will be applied only when tax tools and the petroleum price stabilisation fund have been applied but imported prices remain higher than retail prices, Mai noted.

"Any price hike must ensure benefits to the Government, traders and consumers as well as aiding the national effort to tame inflation to less than 10% this year," she emphasised.

According to Mai, in the first two months of this year, imported petroleum prices have set a record high over a nine-month period, marking increases of 2%-7% depending on the product.

Imported petroleum prices still remain around VND2,000 (USD0.09) higher than domestic sale prices. Vietnam's petrol prices are between VND4,000 and VND8,000 (USD0.19-USD0.38) lower than in neighbouring countries, she stressed.

Due to high imported prices, petroleum traders in Vietnam are incurring a loss of from VND370-VND840 per litre.

Concerning gas prices, Mai told DTiNews that more efforts would be made to ensure more reasonable price rises in the time to come.

"Even though gas traders are required to register their prices, these should be set in accordance with real international prices as the country remains dependent on gas imports.

In the first two months of this year, domestic gas prices have been sharply increased four times, in addition to only one slight price fall.

Gas prices currently stand at around VND461,000 (USD22.9) per 12-kilo canister after five price adjustments, up VND110,000 (USD5.57) on 2011.