Gasoline prices expected to drop sharply next week
World oil prices have dropped to $66.22 per barrel. Domestic gasoline prices are forecast to fall sharply following world oil prices, possibly dropping by up to VND1,700 per liter in the upcoming adjustment period.
In the world market, oil prices have continuously decreased in recent weeks and have moved away from the 80 USD/barrel mark.
On the morning of December 4 (Vietnam time), at the end of the weekend trading session, the price of US WTI crude oil decreased by 0.42% to 66.22 USD/barrel. Meanwhile, the price of Brent crude oil for January 2022 delivery increased by 0.37% to 70.14 USD/barrel.
Oil priceCrude oil prices plunged due to rising Covid-19 cases and concerns that the new Omicron variant could dent global oil demand.
World oil prices are forecast to fall sharply next week amid signs of weakness in the global job market.
Experts say that because world oil prices have been on a downward trend in recent days, domestic oil prices in the upcoming price adjustment session (December 10) will also decrease sharply following world oil prices.
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| Domestic gasoline prices in the upcoming price adjustment session (December 10) will decrease sharply following world gasoline prices. |
According to leaders of some petroleum enterprises in Hanoi, domestic gasoline prices will be adjusted down sharply on December 10. Accordingly, if there is no impact onPrice stabilization fund(BOG) and keeping current taxes and fees, domestic gasoline prices on December 10 could drop by up to 1,700 VND/liter. Oil prices could drop by 1,200-1,600 VND/liter.
If forecasts are correct, domestic gasoline prices will have the second sharp decrease after five consecutive increases in the price adjustment session on December 10.
On the contrary, if the management agency reduces the provision or increases the expenditure of the BOG Fund, the domestic price of gasoline and oil may decrease slightly compared to the above calculation. The specific reduction level depends on the level of provision and use of the BOG Fund.
In the most recent adjustment period (November 25), the Ministry of Industry and Trade - Ministry of Finance decided to reduceGasoline priceAccordingly, the price of E5 gasoline decreased by 752 VND/liter, the selling price is not higher than 22,917 VND/liter. ROn95 gasoline decreased by 1,094 VND/liter, the selling price is not higher than 23,902 VND/liter. Diesel oil decreased by 334 VND/liter, the selling price is not higher than 18,382 VND/liter. Kerosene decreased by 440 VND/liter, the selling price is not higher than 17,197 VND/liter.
Thus, after 5 consecutive increases with a total increase of about 4,000 VND/liter, gasoline prices on November 25 had a decrease with a deep decrease of more than 1,000 VND/liter, rarely seen before.
Also in this operating period, in order to support the lives, production and business of people and enterprises in the face of the impact of the Covid-19 epidemic, the Ministry of Industry and Trade - Ministry of Finance decided to adjust the level of provision and expenditure of the BOG Fund for commodities so that domestic gasoline prices follow the trend of world gasoline prices while still ensuring the maintenance of the BOG Fund tool.
Accordingly, the Joint Ministry will set aside the BOG Fund for RON95 gasoline at VND300/liter, diesel at VND150/liter; kerosene at VND300/liter, mazut at VND500/liter; and will not set aside the Fund for E5 gasoline.
At the same time, the Joint Ministry also reduced the spending level of the BOG Fund for E5 gasoline to 300 VND/liter, and no spending on other petroleum products./.
