Gasoline prices increased for the second time this week

According to the adjustment of the Ministry of Industry, Trade and Finance, the price of RON 95-III gasoline (a popular type on the market) increased by 4,700 VND, to 27,040 VND per liter. Similarly, E5 RON 92 also adds 3,780 VND, with a new price of 25,220 VND.

Oil products increased by 3,830 – 8,490 VND per liter, kg depending on type compared to the previous operating period. Specifically, each liter of diesel and kerosene increased to 30,230 VND and 35,090 VND, respectively. Fuel oil also has a new price of 21,320 VND per kg.

After this adjustment, RON 95 gasoline price is equivalent to July 2022. At that time, gasoline prices fluctuated strongly mainly due to the supply and demand shock after the COVID-19 pandemic and the Russia-Ukraine conflict that disrupted the global supply chain.

Meanwhile, diesel exceeded VND 30,000 per liter for the first time since 2019.

Gasoline and oil prices change as follows:

Unit: VND/liter or kg, depending on type

World prices increased sharply compared to 2 days ago. From March 5-6, each average barrel of RON 95 gasoline increased by 24.2 USD to 116.2 USD. Similarly, diesel is 36% more expensive, kerosene 36%, and mazut 27.2%, according to the Ministry of Industry and Trade.

Today’s gasoline prices are adjusted earlier than usual after Resolution 36 of the Government was issued on March 6, allowing for a more flexible operating mechanism. Specifically, if world prices fluctuate strongly causing the base price to increase by 7%, the retail price will be adjusted immediately after the date of this increase.

During this executive period, the Inter-Ministry has not yet used the Price Stabilization Fund even though the fund still has surplus.

At 2:00 p.m., before retail price adjustment time, The number of customers coming to many gas stations increased compared to the morning, but there was no crowding or jostling. Ms. Hoang Tuyet, a resident of Ha Dong ward (Hanoi), said the cost of refueling has increased significantly.

“Previously, it cost about 60,000 VND to fill the motorbike’s tank, but just now I had to pay nearly 70,000 VND,” she said. According to Ms. Tuyet, what makes many people worried is that if world oil prices continue to fluctuate strongly, domestic gasoline prices may be adjusted to increase continuously, even daily, causing people’s travel and living costs to increase.

The Ministry of Industry and Trade affirmed that domestic petroleum supply in March was “basically guaranteed”, thanks to the combination of reserves, domestic production and imports. Currently, domestic petroleum production and distribution units say they still ensure supply in March.

In the retail market, some large wholesale traders said they had enough supplies in March and April. After the conflict broke out, they also worked with their partners to review delivery plans and ensure supply to the market. According to regulations, key businesses must ensure 20 days of inventory for use. Currently, two domestic oil refineries meet about 70-80% of market demand, the rest must be imported.

However, currently the discount – the commission that wholesale businesses and distributors pay to petroleum retailers – has decreased to a few dozen dong, or even 0 dong. The source of goods delivered to retail units is also limited, significantly reduced compared to before.

The domestic petroleum market fluctuated strongly after the conflict in the Middle East escalated last weekend. Currently, Qatar stopped producing liquefied gas, Israel temporarily closed its gas field, while Saudi Arabia closed its largest oil refinery because of fighting. Shipping activities through the Strait of Hormuz – the “throat” of the world’s oil flow – are almost paralyzed when more than 10% of the global container fleet is stuck here.