In a surprise move, the Vietnamese government price of petrol was lowered from 19,000 VND/liter to 18,000 VND/liter. It was surprising because everyone was expecting the price to be raised to the rumoured 25,000 VND/liter by next month. Some think it will still be raised.
For many, the price decrease will help a lot. A waiter at where I work spends most of his monthly salary on fuel now so he can commute to his university at night. I think I will just save $2 US per month on my current fuel consumption.
Still, the Vietnamese government continues to subsidize fuel in this country. In the long-run, it will probably be better if they let the market set the price of petro, not public opinion. There are been some positive responses to the last price raise. More and more people are using electric bikes. Others, such as myself, replaced our old bikes with more fuel efficient ones. You even see less of the three wheel vehicles on the road that were responsible for a large portion of the pollution.
Read: Vietnam cuts fuel prices by up to 5.3 pct
Edit: Thanks Will for telling me I spelled liter litter 🙂
Miracle! first time I see fuel price drop a bit…
It is nice to see that the price is lower. This will help consumers be more confident about the economy. Vietnam is starting to see some positive effects already 🙂