The price of liquefied petroleum gas (LPG) was slashed by 2,900 VND (14 US cents) per kg on May 1, meaning cooking gas prices would be cut by about 35,000 VND (1.7 USD) per tank weighing 12kg.

This was the sharpest cut in gas prices since the beginning of the year, helping the retailing price of cooking gas fall to around 370,000 VND (17.8 USD) per tank.

The key gas dealers said gas prices showing signs of easing on the world market were the main reason for the domestic cut. Many firms have inked LPG import contracts for May with a price of about 850 USD per tonne, a level significantly lower than last month's figure of approximately 1,000 USD.

Cooking gas prices increased strongly earlier this year, soaring up to 90,000 VND (4.3 USD) per tank within the first two months of the year, according to the Ministry of Finance's price management department.

Retailing prices began to fall from March 3 when the ministry decided to exempt gas dealers from import duty, but they were down insignificantly 16,000-19,200 VND (0.77-0.92 USD) per tank in March due to high world prices./.