VN slash environmental tax on petrol, ramp up imports

Chairman of the National Assembly (NA) Vương Đình Huệ and the NA's Standing Committee have approved a proposal put forward by the Ministry of Finance to slash environmental tax on petrol products, starting from April 1 until the end of the year.

Environmental tax for petrol will be reduced by VNĐ2,000 per litre, diesel VNĐ1,000, kerosene VNĐ300, mazut oil VNĐ1,000, lubricant and grease VNĐ1,000.

The tax cut could see a fall in the State budget collection in the estimated region of VNĐ24 trillion (US$1.05 billion).

Deputy Minister of Industry and Trade Đỗ Thắng Hải said the Government has been working around to clock to ensure supply of petrol products for the economy within the second quarter of 2022.

Hải said the ministry has tasked the country's top ten petrol importers to make sure there will be ample supply for the domestic market, even if Nghi Sơn Refinery's output, the country's second-largest refinery, comes up short.

Meanwhile, the ministry will continue talks with the refinery to resolve the remaining issues and assess its production capacity for better long-term planning. According to the ministry, the refinery traditionally accounts for up to 35 per cent of domestic market supply. Recent disruptions in production have resulted in a temporary supply shortage.

In a recent development, the refinery said it has resumed production and deliveries to retailers. However, it has not yet produced a detailed plan for the second quarter of 2022. In a pre-emptive move, the ministry has given the green light for major importers to ramp up the import of petrol products to ensure ample supply.

The US$4-billion refinery, located in central Thanh Hóa Province, is jointly owned by the Vietnam Oil and Gas Group (PetroVietnam), Kuwait Petroleum Europe B.V. (KPE), Idemitsu Kosan Co., Ltd and Mitsui Chemical Inc. from Japan.