Vietnam cannot afford to let the market drive retail petrol prices, a government economic expert has said in an interview with Thanh Nien newspaper.
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Vietnam cannot afford to let the market drive retail petrol prices, a government economic expert has said in an interview with Thanh Nien newspaper.
Pham Chi Lan, senior advisor to the Research Commission, a socio-economic think-tank advising the Prime Minister, was objecting to some analysts’ suggestion that the government would soon let world prices determine domestic fuel prices.
Global prices are forecast to surge past an unprecedented US$70 per barrel mark soon.
“I think we cannot do that as fuel is a very sensitive product, with a great bearing on the economy,” she said. “It needs government supervision.”
Economic impact
Analysts warned the latest rise in retail petrol prices, effective Wednesday, would have a negative impact on the economy as it would send consumer prices soaring and affect growth.
“No doubt it would send consumer prices soaring,” Lan admitted, saying companies would be most seriously hit.
The government was hoping to cap the increase in Consumer Price Index, a barometer for inflation, at 6.5%, but it has already hit 5.6%.
After this week’s fuel price rise, even the economic growth target of 9.6% appeared unreachable, the analysts said.
“We have to reconcile to the fact we cannot achieve price and growth targets all the time,” Lan said.
Save energy
When asked about mitigating the negative impact of the fuel price rise, she said government agencies, companies and the public needed to save more energy.
Measures to save fuel were taken very seriously in other countries and people followed them voluntarily, she said.
However, in
The government should also allow more companies to import petrol rather than just one firm, the state-run fuel giant Petrolimex, to stimulate competition, Lan said.
(Source:Thanhniennews)
