In a document sent to the Ministry of Industry and Trade on petrol and oil price management, the Vietnam Petroleum Association said that, in the past time, although the world petrol price has continuously experienced complicated and unpredictable developments with fluctuations of up and down. Although the price of petrol and oil in the country has basically remained stable thanks to the good use of tools such as tax, price stabilization fund…

Currently, the total domestic petroleum supply is still sufficient to meet consumption demand. However, in recent days, the world price of finished petroleum products continued to increase, especially diesel, as of August 25, increased by 16.6% compared to the operating period on August 22. /8.

The next operating period falls on September 1, the holiday is on September 2. However, according to the Petroleum Association, most petroleum workers still work normally on this day.

Therefore, in this case, Decree 95 also does not specify which day to choose as an official holiday. If September 2 is selected as a holiday, the price adjustment will be in accordance with the 10-day cycle as prescribed, and if the holiday is selected as September 1, the price adjustment will be transferred to September 5.

The Petroleum Association is concerned that this will cause a certain delay in the retail price of gasoline in the country, which does not properly reflect the increasing trend of world gasoline prices, making it difficult for petrol and oil traders to ensure the source and especially create a hoarding and speculative psychology that destabilizes the market.

Therefore, on the basis of gathering opinions of its members, the Vietnam Petroleum Association proposed that the Minister of Industry and Trade still regulate gasoline prices in the right operating period of September 1 to both reduce difficulties for petroleum trading enterprises, both creating favorable conditions for these units in generating sources to serve well consumption demand during the 4 days of National Day holiday (from September 1 to September 4).

A leader of a key business in the South said, according to data on August 26, the price of finished petroleum products in the Singapore market is at $111.05/barrel with RON 95 gasoline; RON 92 gasoline is 108.18 USD/barrel and 149.03 USD/barrel with diesel.

With the above level, gasoline price in the next adjustment period is likely to increase at 380-400 VND/liter; Oil increased more strongly at 2,300 – 2,400 VND/liter.

Traders also forecast that gasoline prices in the coming period will increase sharply. Currently, the average price of finished gasoline in the Singapore market is about 200-400 VND/liter higher than the domestic retail price, while diesel and kerosene are about 2,000 – 3,000 VND/liter. Therefore, if the operator uses the Stabilization Fund, the domestic petrol price will increase accordingly.

According to many retailers, although the Ministry of Industry and Trade confirmed that there was no shortage of petroleum supply, currently the source of goods from the wholesalers is very limited and the discount rate is low, even minus 1,000-2,000 VND/liter. According to them, only when the discount rate is about 700-800 VND/liter can they make a profit, because the retail store has to bear additional costs of transportation, labor, loss, high rent of premises…

In the latest adjustment period on August 22, gasoline prices remained unchanged, while diesel prices increased from 3pm on the same day. Specifically, the price of E5 gasoline remains the same, the selling price does not exceed 23,725 VND / liter. The price of RON95 gasoline remains at 24,669 VND/liter.

Meanwhile, diesel oil price was adjusted up by 850 VND/liter, the selling price is not higher than 23,759 VND/liter. The price of kerosene is not higher than 24,056 VND/liter, the price of fuel oil is not higher than 16,548 VND/kg.

At this operating period, the inter-ministerial set up a price stabilization fund with E5 gasoline of 451 VND/liter and RON95 gasoline at 493 VND/liter. Diesel oil is 250 VND/liter; at the same time stop spending on petrol price stabilization fund.

Source: Cafebiz