Finance ministry mulls cutting environment tax on gasoline by a fourth

The tax, a flat VND4,000 ($0.18), could be brought down to VND3,000, it informed relevant government agencies as it sought feedback from them.

It is one of several taxes and fees that account for 43 percent of gasoline retail prices currently.

The ministry estimates the cut would cause a loss of VND14.52 trillion to the government’s coffers.

But it is likely to reduce inflation by 0.67 percentage points depending on global oil prices.

Retail prices reached a new peak of VND26,830 this month as the Russia-Ukraine conflict drove crude oil prices to a peak of $119.84 on Thursday, the highest since May 2012.