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Tag: Gasoline

  • Low imports cause gasoline shortage

    Low imports cause gasoline shortage

    The current partial shortage of gasoline and oil has been caused by wholesalers not importing sufficient amounts, says said Deputy Minister of Industry and Trade Do Thang Hai.

    Commissions for retailers being cut amidst fluctuating world prices is also a factor, Hai told the press reporters Tuesday. Fuel retailers said they suffer losses after their commissions were adjusted downward and many want to close down.

    Wholesalers were importing gasoline and oil when their global prices surged, sometimes by 57-85% against the same period last year, but they had to sell it at lower prices.

    Currently, Vietnamese authorities adjust fuel retail prices every 10 days based on the average prices of the previous 10 days. However, many people including lawmakers have said this cycle is no longer suitable because it leaves domestic prices outdated compared to global prices, which have been unstable of late.

    Hai said wholesalers have to cover different costs like freight to bring imported gasoline and oil to Vietnam or to transport domestically produced fuels to ports nationwide, but the costs used by the ministry to calculate the base price are smaller than actual costs borne by the wholesalers.

    For these reasons, he said that wholesalers have incurred losses, so they cut back on imports and slashed commissions for retailers.

    Hai said that other reasons for the partial fuel shortage include lower production by two domestic refineries and the absence of some wholesalers.

    The two refineries produced 9.7 million tons of gasoline and oil in the first 10 months, some 170,000 tons lower than the yearly plan, according to the Ministry of Industry and Trade.

    Several wholesalers in the south have had their business licenses revoked for administrative wrongdoings, and some others have had customs clearance of imported fuel suspended for failing to meet customs-related requirements like electronic data connections.

    The Ministry of Finance has agreed to factor in an increase in the transportation cost of importing fuel, enabling a hike in retail prices.

    The costs is VND290-560 (1.2-2.3 cents) higher for a liter of gas and VND160-660 for diesel, and reflected in retail prices from Nov. 11.

    Another solution is increasing national gasoline and oil reserves, Hai said, noting that current reserves were equivalent to just 5-7 days of consumption.

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  • Gasoline wholesalers required to sell reserves amid fuel shortage

    Gasoline wholesalers required to sell reserves amid fuel shortage

    The Ministry of Industry and Trade has requested state-run gasoline and oil wholesalers to sell their commercial reserves to mitigate fuel shortages in some localities.

    Minister of Industry and Trade Nguyen Hong Dien on Wednesday asked PVN, Petrolimex, Mipec, Petimex and Thanh Le General Import-Export Trading Corporation to sell their reserves. Usually, wholesalers are supposed to ensure enough reserves to cover 20 days.

    As of Sept. 30, the state-owned wholesalers’ commercial reserves were over 1.25 million cubic meters of gasoline and oil, equivalent to 74% of Vietnam’s total consumption in one month.

    Relevant state agencies will consider punishing 14 gasoline and oil enterprises, mostly private wholesalers, which have not supplied fuel to distributors and retailers as planned, the minister said.

    Currently, two domestic oil refineries meet 70-80% of the country’s demand for gasoline and oil. However, half of the two refineries’ supplies depend on imported crude oil, he noted.

    “In reality, Vietnam still has to import around 70% of materials for gasoline and oil production and finished products. Local crude oil and finished fuel products account for only 30%,” said the minister.

    The Government on Wednesday asked the Ministry of Industry and Trade, in coordination with the Ministry of Finance, to ensure sufficient supplies of gasoline and oil for production and daily life in all circumstances.

    After retail prices of gasoline and oil increased on Nov. 1, partial fuel shortages have still occurred in Hanoi and Ho Chi Minh City and some other cities and provinces nationwide. The HCMC Department of Industry and Trade said nearly 20% of local gasoline stations faced gasoline shortages.

    Many retailers said the commissions they receive from wholesalers remain very low, while supplies from wholesalers are still insufficient.

  • Gasoline tax cut not on National Assembly agenda this time

    Gasoline tax cut not on National Assembly agenda this time

    The proposal for cuts to special consumption tax and value-added tax on gasoline will not be reviewed in the upcoming National Assembly session.

    Addressing the press Monday afternoon, Nguyen Minh Son, vice chairman of the Economic Committee, said the government was yet to present a report to the National Assembly on decreasing the special consumption tax and value-added tax on gasoline.

    As a result, the National Assembly will not discuss the issue at the fourth session of the 15th National Assembly, which is set to begin on October 20.

    “When the government submits the proposal, the National Assembly’s agencies would consider verifying and submitting it to the National Assembly at the next earliest meeting,” Son said.

    The Ministry of Finance has prepared a proposal wherein the special consumption tax on gasoline will be halved and the value-added tax on gasoline and oil will be cut by 20-50%. The proposal has been submitted for review and inputs to the Ministry of Justice.

    A representative of the Ministry of Finance said Monday that they had developed a plan that contained different tax reduction measures in the event of gasoline prices rising in the future. It would be submitted to the National Assembly if the government demands it.

    The government determines the timing of measures to reduce VAT and excise duty, which is based on closely monitoring gasoline price changes and balancing the budget collection plan, the rep said.

    Referring to the recent swings in gasoline prices, Son said that it was an issue under the control of the government, including the ministries of Finance and Industry and Trade.

    Since major fluctuations in global gasoline prices would not immediately be reflected in domestic prices, he suggested that that the government initiates adjustments to the retail price management system in a more acceptable manner while protecting the interests of people, enterprises, retailers and importers and exporters.

    Since October 3, the petroleum market, particularly in the southern region, has been experiencing supply shortages.

    People in the south have had great difficulty getting gasoline in recent weeks with many gas stations running out of fuel or selling restricted quantities as a running battle over commissions with oil companies disrupted supply.

    In Ho Chi Minh City, for example, 137 outlets did not have gasoline to sell on October 11.

    Supply has also been scarce in other southern localities including the provinces of Binh Duong, Dong Nai, Binh Phuoc, Kien Giang and An Giang.

    However, supplies resumed October 12 with authorities guaranteeing there would be enough gasoline for the next 10 days.

  • Gasoline prices drop to 13-month low

    Gasoline prices drop to 13-month low

    Gasoline prices fell for the ninth time in a row to the same level as August 2021 with a liter of RON95 priced at VND21,440 ($0.9).

    The most popular gasoline in Vietnam, accounting for around 60% of sales, declined by 5% from the previous adjustment on Sept. 21.

    Biofuel E5 RON92 prices dropped 5.2% to VND20,730. Diesel prices went down 1.47% to VND22,200.

    The Vietnam Chamber of Commerce and Industry (VCCI) has recently proposed that the special consumption tax on gasoline be reduced to zero and value-added tax by half to provide positive impacts amid global uncertainties.

    Global oil price on Monday climbed 2% toward $82 a barrel on indications the OPEC+ alliance is considering slashing production by more than 1 million barrels a day to revive plunging prices when it meets this week.

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  • Gasoline prices fall marginally, diesel surges

    Gasoline prices fall marginally, diesel surges

    Vietnam’s gasoline prices fell 1.56-1.74% on Monday while diesel prices surged 6%.

    A liter of RON 95 now costs VND24,230 ($1.03), down 1.74%. That of biofuel E5 RON 92 costs VND23,350, down 1.56%.

    Monday’s was the seventh consecutive downward adjustment made to gasoline prices, bringing prices down by 25.4-26.3% since this year’s peak on July 21.

    Meanwhile, diesel surged 6% to VND25,180 a liter, marking the first time it surpassed gasoline prices.

    Prices were hiked 9.7% in the two most recent adjustments but were 16.3% lower than this year’s peak.

    On the global market, gasoline has decreased by around 2% while diesel prices surged 9.3%, according to data from the Ministry of Industry and Trade and Ministry of Finance.

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  • Gasoline prices hit six-month low

    Gasoline prices hit six-month low

    Vietnam gasoline prices on Thursday dropped 3.6-3.8% to the lowest since Feb. 11 as global rates kept falling.

    A liter of popular RON 95 gasoline now costs VND24,660 ($1.05), down VND940, while that of biofuel E5 RON 95 costs VND23,720, down VND900.

    Thursday’s was the fifth consecutive downward adjustment made to gasoline prices. Compared to this year’s peak on June 21, prices have fallen by 24.22-24.98%.

    Prices of diesel and kerosine also dropped 4.4-5.2%.

    On the global market, gasoline prices have decreased marginally in the last 10 days, according to data from the Ministry of Industry and Trade and the Ministry of Finance.

    On the global market WTI crude futures slipped toward $91 per barrel Thursday as concerns over supply disruptions eased and markets looked for evidence of improving fuel demand.

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  • Gasoline prices fall fourth consecutive time

    Gasoline prices fall fourth consecutive time

    Vietnam gasoline prices on Monday dropped 1.8 percent to the lowest since Feb. 21 as global rates declined.

    A liter of popular RON 95 gasoline now costs VND25,600 ($1.10), while that of biofuel RON 92 E5 costs VND24,620.

    This means prices have fallen 21.3-22.1 percent since this year’s peak on June 21.

    On the global market, gasoline prices have decreased by 1.22-1.54 percent in the last 10 days, according to data from the Ministry of Industry and Trade and the Ministry of Finance.

    WTI crude futures fell over 2 percent to below $98 barrel Monday as fears of a global slowdown outweighed continued supply disruptions and market tightness.
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  • Gasoline price plunges to 5-month low

    Gasoline price plunges to 5-month low

    Vietnam gasoline prices on Thursday fell to the lowest in five months as global rates decline.

    The Ministry of Finance and Ministry of Industry and Trade adjusted RON95 prices down 12.1 percent to VND26,070 ($1.11) per liter.

    This means RON95 is now 20.7 percent lower than this year’s peak on June 21.

    E5 RON92 gasoline prices dropped 9.8 percent to VND25,070, down 19.9 percent from this year’s peak. The government also brought diesel prices down 7 percent to VND24,850 per liter.

    Global oil prices fell Thursday for a second straight session, as demand concerns outweighed tight global supply after U.S. government data showed tepid gasoline consumption during the peak summer driving season.

    Brent crude futures dropped 33 cents, or 0.3 percent, to $106.59.

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  • Finance ministry proposes tax cuts on gasoline

    Finance ministry proposes tax cuts on gasoline

    The Ministry of Finance has apprised the government of its plan to reduce special consumption tax and value-added tax on gasoline to bring its prices down.

    The plan was announced Thursday by a ministry official without disclosing further details.

    Currently special consumption tax is at 8-10 percent and value-added tax is at 10 percent.

    Gasoline prices rose to an all-time high of VND32,870 ($1.41) per liter last Tuesday.

    VND/literVietnam’s gasoline pricesRON 95E5 RON 92Dec 25 2022Jan 11 2022Jan 21 2022Feb 11 2022Feb 21 2022Jan 3 2022Nov 3 2022Mar 21 2022Jan 4 2022Dec 4 2022Apr 21 2022Apr 5 2022Nov 5 2022May 23 2022Jun 1 2022Jun 13 2022Jun 21 202220k22.5k25k27.5k30k32.5k35kApr 21 2022● E5 RON 92: 27 130

    Prices have surged by 65-70 percent since the end of 2021, burdening both consumers and businesses.

    Earlier this month, the ministry had considered halving the environment tax on fuel, but critics said a cut of VND500-1,000 is too little to have an effect and called for reduction in other taxes.

    Taxes and fees account for 35 percent of gasoline prices.

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  • Gasoline price rises 1.5 pct

    Gasoline price rises 1.5 pct

    Vietnam’s RON 95 gasoline price increased by 1.54 percent Tuesday to a new record of VND32,870 ($1.42) per liter, having risen by 41 percent so far this year.

    This was the seventh increase in a row since mid-April of the popular gasoline, which accounts for 70 percent of total fuel consumption in the country.

    RON 92 biofuel also saw its price rising by 0.61 percent to VND32,370 per liter, having increased by 43.5 percent this year.

    Diesel increased by 3.4 percent Tuesday.

    Vietnam’s fuel stabilization fund, set up to contain price surges, is currently negative.

    The government has cut the environmental tax on fuel by half to VND2,000 from April for the rest of the year, and is considering cutting it by another VND1,000.

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  • Finance ministry seeks further gasoline tax cut

    Finance ministry seeks further gasoline tax cut

    The Ministry of Finance is set to propose a further environment tax reduction on gasoline amid surging prices.

    It wants to scrap the tax altogether after the National Assembly approved a 50 percent reduction to VND2,000 ($0.086) per liter starting April. The finance ministry on April 21 sought official feedback on a proposal to lower gasoline import prices from 20 percent to 12 percent.

    Although such a reduction won’t bring down gasoline prices, it will help to diversify gasoline import markets and avoid dependence on South Korea and ASEAN, which are offering incentive import taxes.

    These proposals show the effort of the Vietnamese government in containing inflation, which has become a topic of concern this year as prices of key commodities surged globally.

    The World Bank has recently slashed global growth forecast by nearly a third to 2.9 percent for this year due to concern of elevated inflation.

    Vietnam’s Consumer Price Index (CPI), which measures inflation, in the first five months rose 2.25 percent year-on-year, compared to 1.29 percent in the first five months of last year.

    Standard Chartered Bank expects Vietnam’s inflation to be at 4.2 percent this year, slightly higher than the central bank’s cap of 4 percent.

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  • Gasoline pushes May inflation to 2.86 pct

    Gasoline pushes May inflation to 2.86 pct

    A surge in the prices of gasoline, food and some other goods has sent the consumer price index rising by 2.86 percent year-on-year in May.

    Global gasoline prices went up while the rising costs of raw materials and ingredients pushed up food prices, according to the General Statistics Office.

    The monthly rise in prices was 0.38 percent with culture, tourism and entertainment products rising by 0.74 percent as travel demand recovered.

    Inflation in the first five months was 2.25 percent as against 1.29 percent in the same period last year.

    Standard Chartered Bank expects full-year inflation of 4.2 percent in 2022 and 5.5 percent in 2023.

    Several economists have also said it would be difficult to contain inflation below the targeted 4 percent rate due to higher prices, especially of gasoline, caused by war in Ukraine.

    Inflation was 1.8 percent last year, the lowest in six years.

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  • Vietnam promises adequate gasoline supply for Q2

    Vietnam promises adequate gasoline supply for Q2

    Vietnam has enough gasoline for the second quarter even without the supply from Nghi Son Refinery, the Ministry of Industry and Trade assured.

    The refinery, which accounts for around a third of domestic supply, has no plans to deliver products in April and May. It also has not made clear its production plan after that, the ministry reported to lawmakers Tuesday.

    For this reason, the ministry will not take into account Nghi Son’s supply for the second quarter, but would ensure enough supply “in every scenario”.

    It has tasked 10 gasoline distributors to increase its import quota by 2.4 million cubic meters for the second quarter.

    Vietnam’s gasoline supply has met with difficulties in the last two months, partly because a cash crunch forced Nghi Son Refinery, one of two such plants in the country, to reduce production from 105 percent to 80 percent, then 55 percent.

    The other refinery, Dung Quat, has increased its supply to 105 percent since earlier last month to bolster the market.

    With the Russia-Ukraine crisis sending oil prices up, Vietnam’s gasoline prices have risen by 28 percent since the end of December to an all-time high of VND29,820 ($1.30) now.

    The government has proposed to lawmakers that a 50 percent cut on environmental tax on gasoline and diesel be implemented to reduce prices.

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  • Gasoline shortages continue in the south

    Gasoline shortages continue in the south

    Gasoline stations remain shut in southern localities, including HCMC, due to a short supply despite authorities’ assurances to the contrary.

    As of Thursday afternoon, seven out of HCMC’s 548 gas stations did not have stocks of the popular RON 95 gasoline to sell, according to the city Department of Industry and Trade.

    In Long An Province, several remained closed, while others limit sales, selling to customers only half of what they order.

    In Vinh Long Province, authorities have found some gas stations with empty tanks and waiting for delivery from suppliers.

    One outlet in Soc Trang Province’s An Lac Tay Commune was found not selling despite having 7,000 liters of the E5 RON 92 biofuel.

    Its manager claimed he was not selling yet because the stock had just arrived.

    Le Viet Long, a deputy inspector at the Ministry of Industry and Trade, said the reason was dubious and authorities are investigating further to slap possible penalties.

    A gas shortage has been reported in the south due to the reduced capacity of Vietnam’s biggest refinery, Nghi Son, though officials have said there is enough to fully meet demand in February.

    Trade minister Nguyen Hong Dien said Wednesday gas stations found not selling despite having stocks would have their license revoked.

    The retail price of RON 95 has increased by nearly 4.6 percent to VND24,360 ($1.07) per liter this year.

    On Friday that could increase to 8.9 percent.

    The prices in Vietnam are determined by the government on the 1st, 11th and 21st day of each month.

  • Petrol, Diesel Prices Hiked For Sixth Consecutive Day

    Petrol, Diesel Prices Hiked For Sixth Consecutive Day

    Domestic fuel rates on Monday were hiked for the sixth consecutive day by the state-owned marketing companies across the metro cities in India leading the prices to touch two-year high. As per the notification from Indian Oil Corporation, petrol and diesel rates were increased by 30 paise and 26 paise in the national capital. Due to firming international oil prices, there has been a continuous revision in fuel prices across the country. In the last sixteen days, the fuel rates have been hiked on fifteen occasions that came into effect from 6 am today.

    Here are the prices of petrol and diesel per litre in the five metros on December 7, 2020:

    City Petrol Diesel
    Delhi ₹ 83.71 ₹ 73.87
    Mumbai ₹ 90.34 ₹ 80.51
    Chennai ₹ 86.51 ₹ 79.21
    Kolkata ₹ 85.19 ₹ 77.44
    Bengaluru ₹ 86.51 ₹ 78.31

    On Sunday, petrol and diesel prices shot past ₹ 90 per litre and ₹ 80 per litre in Mumbai. With a new revision in fuel rates, petrol retails at ₹ 90.34 per litre and ₹ 80.51 per litre. Buyers in the capital city will have to shell out ₹ 83.71 for one litre of petrol and will have to pay ₹ 73.87 per litre for diesel. The fuel prices have seen a cumulative hike of ₹ 2.65 per and ₹ 3.42 per litre, respectively. Petrol and diesel rates remained static since September 22 and October 2, respectively. The OMCs started revising rates of auto fuels from November 20 onwards.

    Petrol price in Kolkata has been increased to ₹ 85.19 per litre, which was ₹ 84.90 per litre on Sunday. Similarly, the cost of diesel also increased by 26 paise from 77.18 to 77.44 rupees per litre. In Chennai, petrol and diesel retailed at ₹ 86.51 per litre and ₹ 79.21 per litre, respectively. The two auto fuels in Bengaluru cost ₹ 86.51 per litre and ₹ 78.31 per litre for petrol and diesel respectively.

    Oil marketing companies (OMCs) have been revising the retail rates of petroleum products since November 20, 2020. The 58-day hiatus in petrol price revision and 48-day status quo on diesel rates were preceded by no change in rates between June 30 and August 15 and an 85-day status quo between March 17 and June 6.

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