Fuel supply not to be hit even if Nghi Son output remains low: ministry

Deputy Minister of Industry and Trade Do Thang Hai said Friday his ministry has instructed 10 fuel distributors to increase their its imports by 2.4 million cubic meters in the second quarter to ensure demand is fully met.

Nghi Son, one of Vietnam’s two refineries and which accounts for 35-40 percent of domestic demand, has not announced its output schedule for the third and last quarters, and the ministry has asked for it by early May, he said.

The refinery in the central province of Thanh Hoa started to cut production in February due to a cash crunch and has not resumed normal operations since, causing shortages in several localities.

Gasoline prices have risen by 20.2 percent since the beginning of the year.

But the ministry said it has used the stabilization fund to keep them lower than global rates.

The environment tax on fuel was cut by VND2,000 ($0.09) per liter on April 1.

The ministry and the Ministry of Finance are studying the possibility of lowering more fuel taxes.