Vietnam fuels inflation by hiking petrol prices

The government raises the price of gasoline by 31%, spooking the stockmarket and prompting economists to say inflation remains a problem.

Vietnam government officials surprised commuters and economists when they increased fuel prices by 31% yesterday, in an effort to cut state subsidies. They also said the move was designed to ward off smuggling, according to state media reports.

The price of gasoline rose 31% to Vnd19,000 $1.10 per litre, while a litre of diesel rose 15% to Vnd15,950. This is on top of a hike in February, when the government increased gasoline prices by 11% and diesel prices by 36%....

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