The Vietnamese government has, for the first time, permitted local petroleum companies to freely set retail prices of petroleum products, local newspaper Vietnam News reported Monday.

Under a government decision issued last Friday, local petroleum retailers will set the prices based on market forces, but the state can intervene in case of suspected collusion or other market abnormalities.

The new decision will encourage competition among retailers, and curb oil speculation. Earlier, Vietnamese ministries of Trade and Finance decided retail prices of petroleum products.

Between January and March, Vietnam imported more than 2.9 million tons of petroleum products worth over 1.4 billion U.S. dollars, up 13.2 percent and 13.6 percent over the same period last year, respectively, according to the country's General Statistics Office.