Gasoline price today December 23, 2024: Sharp decrease due to USD increase

World oil prices

Recorded at 4:30 a.m. on December 23, 2024 (Vietnam time) on Oilprice, WTI oil price reached 69.58 USD/barrel, a slight increase of 0.12% (equivalent to 0.08 USD/barrel). Similarly, Brent oil price stood at 72.66 USD/barrel, an increase of 0.14% (equivalent to 0.10 USD/barrel).

Oil prices fell for a third straight week in December, driven mainly by the US Federal Reserve's more cautious approach to cutting interest rates next year, along with the US dollar rising to its highest level in two years.

During the meeting, the Fed signaled that it would cut interest rates more gradually and carefully, putting pressure on oil prices to fall sharply.

“The committee will adjust monetary policy as needed to achieve its objectives,” the Fed said in a statement on Wednesday. The statement also stressed that the Fed will assess a variety of factors, including labor market conditions, inflation pressures and expectations, and financial and international developments.

The Fed cut its benchmark interest rate by 25 basis points on Wednesday, bringing it to a range of 4.25% to 4.50%, as expected. Expectations that the Fed will slow the pace of rate cuts have sent the dollar soaring.

The dollar index hit a two-year high of 108.880 on Friday afternoon. A stronger dollar makes oil more expensive for countries using foreign currencies, putting downward pressure on oil prices.

Concerns about falling fuel demand by 2025, especially in China – the world’s largest oil importer – also contributed to the weak oil prices.

China's crude oil imports are expected to peak in 2025, while total oil consumption could peak in 2027 due to falling diesel and gasoline demand, according to Sinopec's annual energy outlook report.

Domestic gasoline prices

On the afternoon of December 19, the Ministry of Finance and the Ministry of Industry and Trade jointly announced the adjustment of retail gasoline prices. This change will take effect from 3:00 p.m. the same day.

According to the new decision, the price of E5 RON 92 gasoline increased by 380 VND/liter, while RON 95 gasoline increased by 410 VND/liter. After adjustment, the maximum price of E5 RON 92 gasoline is 20,240 VND/liter, while RON 95 gasoline is 21,000 VND/liter.

At the same time, the prices of various types of oil also increased during this adjustment period. Specifically, diesel increased by 480 VND/liter, to 18,730 VND/liter. Kerosene increased by 400 VND/liter, reaching 18,960 VND/liter, and fuel oil increased by 330 VND/kg, to 15,900 VND/kg. During this adjustment period, the joint ministries continued not to make any deductions or disbursements from the Petroleum Price Stabilization Fund.

For RON 95 gasoline, this is the second consecutive increase after a decrease. Currently, the price of this type of gasoline is still at its lowest level in more than 3 years, equivalent to July 2021.

Since the beginning of the year, gasoline prices have increased 25 times and decreased 25 times, while oil prices have increased 22 times and decreased 28 times. The Joint Ministry has maintained that the Price Stabilization Fund will not be used in recent management periods. By the end of the second quarter, the fund's balance was more than VND6,000 billion, a decrease of about VND600 billion compared to the end of 2023, according to a report by the Ministry of Finance.

According to a representative of a petroleum business, domestic petroleum prices will continue to be adjusted this week according to the world market developments. It is expected that during this week's price adjustment period, petroleum prices may decrease. Specifically:

RON 95-III gasoline is expected to decrease by about 400 VND/liter.

E5 gasoline decreased by about 370 VND/liter.

Diesel oil decreased about 40 VND/liter.