Vietnam will reduce the import duty on petrol and kerosene to 20 per cent, from 35 per cent now, and also lower the duties on diesel and fuel oil before tripling the environmental tax next month, the Finance Ministry said.

The duty on diesel will be cut to 20 per cent from 30 per cent now, that on fuel oil will decrease to 25 per cent from 35 per cent, and on jet fuel will also drop to 10 per cent from 25 per cent, the ministry said in an emailed statement.

The new duties will come into force, it said, adding the reductions were to stabilise domestic retail fuel prices before several environmental taxes are to be tripled next month in line with parliament approval.

From May 1 Vietnam will triple the environment tax on petrol and jet fuel to 3,000 dong (14 US cents) per litre, and that on diesel will rise to 1,500 dong from 500 dong now while the tax on fuel oil will be 900 dong per litre, from 300 dong at present, the statement said.