Gasoline prices may continue to fall at the beginning of the week.
Sunday is the usual day for adjusting gasoline and diesel prices, but because it falls on a holiday, the regulatory agency postponed it to Monday (June 17th).
According to data from the Ministry of Industry and Trade, the average price of finished gasoline products in the Singapore market during this cycle was $64.3 USD per barrel for RON 92 and $66 USD per barrel for RON 95, a decrease of 7.2-7.4% compared to the previous period. Along with this, the sharp drop in oil prices means that gasoline and diesel prices may continue to fall significantly in the price adjustment on June 17th.
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| Gasoline prices will drop early next week. |
According to the head of a petroleum distribution company in Ho Chi Minh City, many businesses are running into deficits in their price stabilization funds, so gasoline prices will be adjusted down by 600-800 VND per liter in this price adjustment period.
"Besides adjusting prices downwards, the regulatory agency may also draw more funds from the stabilization fund because it is currently in deficit. If the regulatory agency both draws from and disburses funds from the stabilization fund, gasoline prices could decrease by 300-400 VND per liter," a business leader in Ho Chi Minh City further shared.
At the price adjustment on June 1st, each liter of RON 95 gasoline was reduced by 380 VND, E5 RON 92 gasoline by 269 VND, diesel by 220 VND, kerosene by 197 VND, and fuel oil by 182 VND per kilogram.
After the adjustment, the maximum price per liter of RON 95 gasoline is 21,219 VND; E5 RON 92 gasoline is 20,219 VND; diesel fuel is no higher than 17,394 VND; kerosene is 16,225 VND...
Along with the price reduction, authorities continue to use the Price Stabilization Fund for E5 RON 92 gasoline at 398 VND per liter, a decrease of 59 VND compared to the price adjustment 15 days ago. No funds from the Price Stabilization Fund are used for diesel and RON 95 gasoline.
According to information from the Ministry of Finance, the total amount used from the fund in the first three months of the year was approximately VND 5,787 billion, while the amount contributed to the fund in the quarter was only about VND 1,659 billion. The balance at the end of 2018 was VND 3,500 billion and accrued interest was VND 3.4 billion. However, as of the end of the first quarter, the Price Stabilization Fund was still in deficit at VND 620.643 billion. The fuel price stabilization fund has been heavily depleted by the authorities since the fourth quarter of 2018 and the first months of 2019 due to continuously rising prices.
