The Ministry of Finance on March 7 agreed to increase the domestic retail price of RON 92 petrol to VND22,900 (US$1.09) per litre from the present rate of VND20,800.
The new price rate is inclusive of Value Added Tax and took effect from 4pm yesterday.
Diesel prices were also hiked by VND1,000, from the present rate of VND20,400 to VND21,400 per litre.
Kerosene prices rose from VND20,200 to VND20,800 per litre, while mazut increased by VND2,000, from VND16,800 to VND18,800 per litre.
The ministry said it had slashed import tax on petrol and oil to zero per cent, from current four per cent. In addition, petrol tax was reduced from VND1,400 to VND300 per litre, diesel from VND1,240 to VND300 per litre, oil from VND780 to VND300 per litre and mazut from VND1,610 to VND300 per kilo.
The ministry also said that domestic dealers and distributors were suffering from low domestic retail prices, and petrol prices needed to be adjusted.
On the same day, Ta Long Hy, Director of Vinasun Taxi Company cum Chairman of the HCMC Taxi Association said that after the petrol price hike, the association is considering a hike in transport costs.
Hy said that transport enterprises will have to carefully consider how much to hike, keeping in mind both operating costs as well as their valuable clientele.