Page last updated at 16:24 GMT, Monday, 21 July 2008 17:24 UK

Vietnam ups petrol prices by 31%

Vietnamese dong
Vietnam wants to reduce its subsidies for the oil sector

Vietnam has raised petrol prices by 31% and domestic fuel prices by as much as 36% as it seeks to reduce state subsidies for the commodity.

A litre of commonly used 92 octane petrol is now sold for 19,000 dong ($1.15), up from 14,500 dong per litre, according to importing firm Petrolimex.

The rise will put prices in Vietnam, which depends heavily on oil imports, more in line with the rest of Asia.

Energy prices have been rising worldwide, adding to inflation worries.

The latest move by the Vietnamese government reverses its promise to leave prices unchanged to the end of the year.

According to a recent report from the Asian Development Bank, the threat of high inflation could undo the economic progress made by Vietnam in the past 20 years.

Vietnam has been hit by soaring inflation and a widening trade deficit.

"It makes sense for fuel prices to go in line with world oil prices but as a result inflation will remain on the rise," said economist Tai Hui, from Standard Chartered in Singapore.

Inflation dangers 'threaten Asia'
15 Jun 08 |  Business
Fuel pushes up Indian inflation
06 Jun 08 |  Business
Oil prices 'threaten Asian boom'
05 May 06 |  Business
ADB head warns on high oil price
03 May 06 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2016 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific