Consumers are hard hit by current skyrocketing gas prices

According to the association’s chairman, Nguyen Si Thang, the proposal is expected to assist in cooling down the domestic gas market, as well as give consumers some assistance amid the current skyrocketing gas prices.

Some gas firms in HCM City said they would be able to cut their retail prices by between VND8,000 and VND10,000 (USD0.38-USD0.47) per 12-kilo, if the proposal was approved.

The import tax for gas was risen from 2% to 5% beginning on January 1.

In order to ensure that consumers are protected, the association has requested that its members commit to lowering their prices as a result of the tax break.

“The global gas market has recorded the highest price increase to date, of USD1,000 per tonne. Gas prices may see more fluctuations in time to come," Thang noted.

Concerning the proposal, Luu Duc Huy, Deputy Director of the MoF’s Department of Tax Policy, said they will take the issue into account in a bid to stabilise the domestic market and foster the Government’s efforts to curb inflation.

Nguyen Quoc Chien, from the HCM City Department of Finance, said they have recently fined two local gas trading agencies with a combined VND40 million (USD1,901) for increasing their prices beginning on February 1, without advanced approval.

A market watchdog in HCM City has been intensifying their oversight of the gas and petroleum trade citywide. The city will apply stricter penalties to violators, said Dang Van Duc, head of the agency.

Retail prices among gas traders in HCM City have increased three times over last month, bringing them to about  VND425,000 (USD20.2) for a 12-kilo canister. The rise in prices has shocked consumers, who have been used to one price rise per month over the past year.