Gas prices increase sharply, consumers face pressure of escalating costs

According to the latest adjustment, gas prices increased by 5,000 VND/kg, equivalent to an increase of 60,000 VND/12 kg cylinder and 225,000 VND/45 kg cylinder. Photo: Thanh Phuc

Starting from February 1, the sharp increase in world crude oil prices has pushed domestic gas prices to high levels. Accordingly, gas brands such as: EIF, VT, PM, HAS, PV, PET, PHOENIX, Petrolimex... have prices ranging from 430,000 - 1,800,000 VND for cylinders weighing from 12 - 45 kg.

Mr. Nguyen Hoang Minh, owner of a gas and kitchen equipment store on Tran Canh Binh Street (Vinh City) said: “Since February 1, retail gas prices have increased sharply. Companies have increased the price of 12 kg gas cylinders by 60,000 - 64,000 VND/cylinder (depending on the type). The equivalent of an increase of about 5,000 VND/kg in gas prices. Many gas companies have announced new gas prices with 12 kg gas cylinders priced at over 500,000 VND/cylinder.”

The increase in gas prices has had a significant impact on families using gas for cooking. Photo: Thanh Phuc

According to Mr. Minh, the current increase in gas prices is due to the influence of the world gas market, the cold weather in European countries and the US, which use a lot of gas for heating and industrial purposes. On the other hand, due to the prolonged war, the Chinese market opened to tourists after the COVID-19 pandemic, so the demand for gas has also increased compared to before.

Gas is an essential commodity used by most families every day. Therefore, when gas prices increase, the cost of living increases, causing consumers to suffer a lot of pressure. “Each 12 kg gas cylinder my family can only use for more than 1 month. Previously, each 12 kg Petrolimex gas cylinder cost 430,000 VND, now it has increased to 493,000 VND.

Food and beverage businesses are under a lot of pressure as gas prices increase sharply. Photo: Thanh Phuc

This means that each month the family has to spend an additional 63,000 VND on cooking fuel. Now we can only find the most economical way to cook, but we cannot switch to using an induction cooker because the installation cost is high and the electricity price has just been approved to increase the retail price," said Ms. Luu Thi Tuyet in Nghi Trung commune (Nghi Loc).

The increase in gas prices not only puts pressure on households, but also causes difficulties for food and beverage businesses. “Input prices for food items increase when transportation costs increase. Now gasoline prices have increased, followed by gas prices, and now, according to information, the Government has just approved an increase in retail electricity prices. These escalating prices make business very difficult.

Many restaurants have replaced gas stoves with electric stoves and boilers to save costs. Photo: Thanh Phuc

On average, my kitchen uses 3 45 kg industrial gas cylinders every month. Now, after the price adjustment in early February, each cylinder has increased by nearly 250,000 VND, which means the gas bill alone has increased by nearly 1 million VND/month. Meanwhile, at present, we cannot increase the prices of dishes served to customers," said Mr. Hoang Hiep, owner of a restaurant on Le Mao extended street (Vinh Tan ward, Vinh city).

According to Mr. Hiep, when gas prices increased, he only used a gas stove for some processing steps that required quick heating, and replaced the rest with electric pots and boilers. However, the increase in gas prices and the upcoming increase in electricity prices forced him to change to cooking with a charcoal stove and consider increasing the selling price of the restaurant's dishes.

Gas dealers are also facing difficulties as consumption has decreased due to people switching to electric and induction cookers. Photo: Thanh Phuc

Not only creating more burden for consumers, the increase in gas prices also has a significant impact on the businesses selling this product. Accordingly, many gas dealers said that gas consumption last week decreased sharply by 10-20% compared to before. The reason is that due to the increase in gas prices, many families have switched to cooking with electric stoves or coal stoves to save costs.

It can be seen that the increase in gas prices along with the increase in gasoline and oil prices is a significant obstacle to production, business and people's daily life. According to experts' forecasts, this price increase trend will probably continue in the near future. Therefore, people need to find appropriate ways to respond, and at the same time, authorities need to have policies to stabilize prices and reduce the burden on consumers.

Many food and beverage businesses have considered increasing prices. Photo: Thanh Phuc