Vietnam cuts petrol, diesel prices by up to 7.2 pct

HANOI, Nov 8 - Vietnam has lowered retail petrol and diesel prices by as much as 7.2 percent, the fifth cut at the pump since early October in response to easing world oil prices, state media reported.

Retail prices for the popular 92-octane petrol were cut 6.7 percent to 14,000 dong (84.8 U.S. cents) from 15,000 dong, Vietnam Net (www.vnn.vn) said, citing a decision on Saturday by the Finance Ministry.

Prices of diesel with 0.25 percent sulphur were cut 7.2 percent to 12,950 dong per litre, from 13,950 dong, while kerosene prices fell 6.45 percent to 14,500 dong per litre.

The widely expected price cuts went into effect around midday on Saturday, Vietnam's largest fuel importer and retails, Petrolimex, said in a statement on its Web site, www.petrolimex.com.vn.

The Finance Ministry, which has been weighing higher import duty on oil products, raised the import tariff on petrol to 20 percent from 15 percent, the VNN report said.

Hanoi last cut pump prices for petrol, diesel, kerosene and fuel oil by up to 3.5 percent on Oct. 31, taking advantage of falling world prices.

Vietnam, which exports all of its daily crude production of around 300,000 bpd, expects the state budget to lose $2.2 billion dong if world crude prices stayed at around $70 a barrel, Finance Minister Vu Van Ninh has said.

On Friday U.S. crude <CLc1> settled up 27 cents to $61.04 a barrel, off earlier highs of $62.82 a barrel. London Brent crude for December <LCOc1> settled down 8 cents at $57.35 a barrel.

Lower oil product prices would help Vietnam control inflation, which has been in double digits since last November. Hanoi has forecast inflation this year at 24 percent, nearly double last year's rate of 12.6 percent. ($1=16,501 dong)