Oil price will increase beyond gasoline price in the adjustment period on 5/9

, Oil price will increase beyond gasoline price in the adjustment period on 5/9

The price of imported gasoline is currently at the lowest level in the past 8 months. On the contrary, oil price recorded a sudden increase, forecasted to increase by 1,800-2,000 VND/liter.

According to data from the Ministry of Industry and Trade, the price of gasoline and finished oil on the Singapore market updated to August 31 suddenly dropped sharply compared to a few days ago. Accordingly, the average gasoline RON 92 is 97.31 USD/barrel; RON 95 gasoline is 100.14 USD/barrel and 140.3 USD/barrel of diesel.

Meanwhile, the average price of petroleum products in the world in the previous operating period was 107.8 USD/barrel of RON 92 gasoline; $112.08/barrel of RON 95 gasoline and $133.95/barrel of diesel.

Oil prices will increase beyond gasoline prices in the adjustment period on September 5 - Photo 1.Oil prices will increase beyond gasoline prices in the adjustment period on September 5 - Photo 1.

Source: Ministry of Industry and Trade.

The price of gasoline A95 has decreased to 100 USD/barrel, this is the lowest price in the past 8 months. This price is equivalent to the gasoline price on January 20, then the domestic gasoline price (RON 95) was 23,876 VND/liter. If you deduct the environmental protection tax of 3,300 VND, the price of gasoline is only 20,576 VND.

Many leaders of petroleum wholesalers assessed that the price of finished gasoline in Singapore tends to decrease, so it is forecast that the domestic gasoline price tomorrow may decrease by about 200-300 VND/liter. However, oil will increase sharply at 1,800-2,000 VND/liter.

The Vietnam Petroleum Association also said that diesel oil price in the last 2 weeks is increasing strongly again with an increase of 10-16% compared to the average price of the operating period on August 22. This makes petrol and oil operators in the next operating period may be under pressure to increase prices again.

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Recently, after a series of complaints and petitions from petroleum enterprises about the shortage of sources, the Vietnam National Petroleum Group (Petrolimex) has just sent an urgent document to the relevant ministries and agencies to propose to remove difficulties.

According to Petrolimex, the price movement of petroleum products is currently very complicated. The price has an unusual increase/decrease with a very large margin and is strongly influenced by factors of geopolitics, forecasts of a global economic recession, tension in gas supply in the EU region, etc.

Oil prices will increase beyond gasoline prices in the adjustment period on September 5 - Photo 2.Oil prices will increase beyond gasoline prices in the adjustment period on September 5 - Photo 2.

Illustration

Meanwhile, the components of the base price such as the cost of bringing gasoline to the port (premium) and the cost of transportation to generate domestic sources have not been fully calculated from the price management cycle on 11/7/2022. Up to now, it has created great difficulties in terms of financial resources of key traders to share remuneration and discounts with agents.

For example, normally the direct retailing of petroleum companies accounts for 49% of the national market share, about 17,000 m3/day, but in recent days the output has increased by over 21,000 m3/day and peaked on August 31. direct retail volume is 27,000m3, an increase of 60% compared to normal days.

This fact makes the demand for the source of goods of petrol and oil retail franchisees under the distribution system of Petrolimex also constantly increase.

Therefore, the sudden increase in consumption has created great pressure in source generation because the amount of inventory declines very quickly, while the purchase cannot immediately make up for the shortfall…

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Also recorded in the world market, crude oil prices continued to increase “hot” last week but turned down in the last 3 days. According to Oilprice, the price of Brent crude oil increased by $0.66, to $93.02 a barrel, while the price of WTI crude was at $86.87 a barrel in the session on September 3. After extending last week’s gains, crude oil turned lower this week.

According to experts, crude oil prices fell because of concerns about weakening oil demand due to China’s continued implementation of the Zero COVID policy. At the same time, the fact that the European Union and the US continue to raise interest rates are tending to weaken the economy.

This week, OPEC revised its market surplus for this year and now sees demand less than supply by 400,000 bpd, a previous forecast that put a surplus of 900,000 bpd. The producer group expects a market deficit of 300,000 bpd in their base case in 2023, according to Reuters.

The market is still “waiting” for the output results of the Organization of the Exporting Countries and its allies (OPEC +) scheduled to take place on September 5.

The price of oil will exceed the price of gasoline in the adjustment period on September 5 - Photo 3.The price of oil will exceed the price of gasoline in the adjustment period on September 5 - Photo 3.

Up to now, the price of gasoline has undergone 22 price adjustments, including 13 increases and 8 decreases, once remaining the same. At the operating period on August 22, gasoline RON 95-III and E5 RON 92 were VND 24,660 / liter and VND 23,720 / liter, respectively. And diesel oil increased by 850 VND / liter, to 23,750 VND. Each liter of kerosene also costs 730 VND more, the new price is 24,050 VND.

In this adjustment, the operator decided to set up a stabilization fund for E5 RON92 gasoline at 451 VND/liter, RON95 gasoline at 493 VND/liter, diesel oil at 250 VND, kerosene at 400 VND and mazut at 641 VND/kg; In the opposite direction, continue to stop spending using BOG fund for gasoline and oil products.

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Source: CafeF

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