The world oil price has reached a record level in the past 14 years, approaching the milestone of 140 USD/barrel, so experts predict that in the upcoming price adjustment (March 11), the price of gasoline may increase to 30,000 VND/liter if net market.
World oil prices have increased sharply since the beginning of this week due to concerns about the risk of disruption in the supply of oil and other energy products from Russia in the context of the Russia-Ukraine conflict.
In the morning session of March 7, the price of Brent oil at one point increased to 139.13 USD/barrel, the highest level since July 2008. Meanwhile, the price of WTI oil sometimes spiked to 130.5 USD/barrel, the highest since July 2008.
Closing the session on March 7, the price of Brent oil increased by 4.7%, reaching $124/barrel, while the price of US WTI oil increased by more than 3.8%, to $120/barrel.
According to research group VnDirect, the price of Brent oil has increased by 30% since the beginning of this year. Oil prices surged as Russia entered Ukraine.
Finished petroleum price data in the Singapore market updated by the Ministry of Industry and Trade to March 3 shows that gasoline prices are at 130-133 USD/barrel, diesel is traded around 136.58 USD/barrel, increased by over 10% compared to the operating period on March 1st.
On March 11, the Inter-Ministry of Finance – Industry and Trade will adjust gasoline prices according to the cycle. Facing the situation of gasoline and oil prices in the world, which has established a historic peak, experts predict that gasoline prices in the upcoming price adjustment phase will also climb.
Leaders of some petroleum businesses in Hanoi calculated that according to the base price on March 8, the domestic retail price of gasoline is negative 3,800 VND/liter and diesel is negative 4,800 VND/liter. Therefore, in the upcoming adjustment period (March 11), gasoline prices may increase sharply, at the range of 3,800-4,800 VND/liter.
After the price adjustment period on March 1, businesses lost about 2,000-4,000 VND/liter. Meanwhile, world crude oil prices continued to rise sharply. Therefore, in the upcoming operating period, despite the intervention by the Price Stabilization Fund, the domestic gasoline price will continue to increase.
If the above forecast is correct, the domestic gasoline price in the adjustment period on March 11 will exceed the mark of 30,000 VND/liter, in case the management agency does not reduce the tax. According to some experts, the environmental tax must be reduced by at least 2,000 VND/liter, along with the discharge of the Price Stabilization Fund, to keep the domestic gasoline price at the current level. Otherwise, domestic gasoline prices will continue to rise.
The high price of gasoline and oil not only causes difficulties for people and businesses, but also headaches for petrol distributors themselves. In order to control the price of gasoline and oil, many businesses have proposed to the management agency to strongly use tax tools.
In order to cool down the price of petrol and stabilize the market, the Ministry of Industry and Trade proposed the Ministry of Finance to recalculate the normed business costs and profit that have been applied since 2014, the fee for bringing petrol and oil from abroad to Vietnam as well. as taxes in the base price, especially the environmental protection tax.
The Ministry of Finance has proposed to reduce environmental protection tax at 1,000 VND/liter of gasoline, 500 VND/liter for oil, applied from April 1 to the end of 2022. But according to many experts and businesses, the reduction level This is low in the context that the price of this item has increased so strongly at present. The reduction of environmental protection tax needs to be “full dose”, at least 50% of the current tax rate (ie it needs to be reduced at least 2,000 VND/liter).
During the most recent petrol and oil price management period (March 1), the Ministry of Industry and Trade – Finance continued to increase petrol and oil prices. This is the 3rd time in a row that petrol prices have increased in the New Year of the Tiger.
Accordingly, the price of gasoline E5 RON92 increased by 545 VND/liter, the selling price was not higher than 26,077 VND/liter; RON95-III gasoline price increased by 547 VND/liter, the selling price was not higher than 26,834 VND/liter.
Prices of oil commodities have increased. Kerosene was 19,978 VND per liter, up 469 VND; diesel oil is 21,310 VND per liter, up 509 VND; fuel oil is 18,468 V the inter-ministerial budget for price stabilization fund with E5 gasoline is 250 VND/liter, RON95 gasoline is 220 VND/liter, and diesel oil is 300 VND/liter.
At this operating period, the inter-ministerial criticized the establishment of a price stabilization fund with fuel oil, while other petroleum products were not set up. At the same time, the inter-ministerial budget for price stabilization fund with E5 gasoline is 250 VND/liter, RON95 gasoline is 220 VND/liter, and diesel oil is 300 VND/liter.