Vietnam fuel import tax spikes to 12%

Fuel prices have been reduced but it seems like the government has another strategy in mind.

According to Maybank Kim Eng, the Ministry of Finance reduced fuel price by 2.8% for gasoline and by 1% for diesel due to falling oil prices, but it increased fuel import tax from 10% to 12%. 

Here's more from Maybank Kim Eng:

It appears that the government is using falling oil prices and falling inflation in Vietnam as an opportunity to gradually reduce subsidies in energy prices and to rebuild its reserves for potential future price stabilization (in the case of the increased fuel import tax). Electricity prices were hiked 5% during the week and water prices will be increased between 20% and 50% throughout the country.

The Ministry of Finance reduced fuel price by 2.8% for gasoline and by 1% for diesel due to falling oil prices, but it increased fuel import tax from 10% to 12%. Electricity prices were hiked 5% during the week and water prices will be increased between 20% and 50% throughout the country.