Chemical and fertilizer production costs will increase by 7% according to new electricity prices

According to the Vietnam Chemical Group, the increase in electricity prices according to the Electricity Price List just announced by the Ministry of Industry and Trade in Decision 2256/QD-BCT on March 12, which will adjust the electricity price up by 7.5% from March 16, will directly impact and significantly affect the production and business activities of most units and member enterprises of Vinachem Group.

Packing NPK fertilizer products at APROMACO Lao Cai Superphosphate factory. Photo: VNA

One of the senior leaders of Vinachem Group said that the basic chemical and industrial gas production sectors will be most affected.

If electricity prices increase by 7.5%, the production of industrial gases such as oxygen or nitrogen will increase by 7%. Some basic chemicals such as caustic soda, yellow phosphorus and chlorine will increase their production costs by 4% and 7% respectively.

Less affected are the mining and mineral processing industries such as apatite, which will only increase costs by 1.5%. In particular, fertilizer production will increase costs from 0.3% to 1.5%.

The decision to increase electricity prices as well as some remaining difficulties and problems such as the regulation on exemption of value added tax on fertilizer products are causing fertilizer and chemical enterprises to incur increased production costs and product prices.

To adapt to the new situation and gradually overcome difficulties, Vinachem Group advocates solutions such as reducing raw material and fuel costs; increasing investment in technology to improve labor productivity; rationalizing and improving production stages...

According to Vietnam+