The prices of kerosene and diesel also increased by VND900 and VND700 per litre respectively while a litre of mazut rose by VND900 a kilogram.
The changes took effect at 15:00 on March 11 following a joint decision by the Ministry of Finance and the Ministry of Industry and Trade, which allows petrol prices to increase to the ceiling of VND17,286 a litre.
The previous day the National Assembly Standing Committee agreed to a proposal by the Government to raise the environmental protection tax on oil and petrol products by three times to VND3,000 a litre, effective from May 1.
Minister Dinh Tien Dung said the rise in environmental protection tax will come with the cut in fuel import duty from the current 35% to 20%.
The latest price adjustment ended nine consecutive months of price drops which saw a litre of A92 petrol, popular with motorbike users, fall from the record high of VND25,640 last July to VND15,670, in line with the downward trend in global oil prices.
The sharp fall in world oil prices in recent months has raised concerns that it will hurt Vietnam’s oil production and budget revenues, but many experts state that lower prices could bring Vietnam more gains than losses.
Minister of Planning and Investment Bui Quang Vinh said earlier this year that since Vietnam’s imports of refined oil products outstrip its crude exports, the economy can benefit from lower input and transport costs.
In February, Vietnam’s annual inflation dropped to 0.34% from 0.94% in January, thanks largely to lower transport costs as a result of falling fuel prices.
