Gasoline prices today, November 7: Slight decrease after US election
Oil prices today, November 7: World oil prices fell slightly as investors assessed the impact of President-elect Donald Trump's foreign policy.
World oil prices today
Specifically, at 5:00 a.m. (Vietnam time), WTI oil price reached 71.81 USD/barrel, down 0.24%, while Brent oil price decreased 0.58%, down to 75.08 USD/barrel.
The main reason for this decline is the strong US dollar, which reached its highest level since September 2022, after Donald Trump's victory. When the US dollar strengthens, oil (a commodity traded in US dollars) becomes more expensive for other countries, putting downward pressure on oil prices.
UBS analyst Giovanni Staunovo said Trump's re-election could mean renewed sanctions on Iran and Venezuela, reducing the amount of oil supplied to the market, which would benefit oil prices.
Iran, a member of OPEC, currently produces about 3.2 million barrels of oil per day, accounting for about 3% of global oil production.
Additionally, geopolitical factors, such as the war in the Middle East and the possibility of renewed sanctions on Iran and Venezuela, could help limit the decline in oil prices in the short term. According to Giovanni Staunovo, Trump’s policies could reduce global oil supplies if sanctions on Iran and Venezuela are maintained.
The US Energy Information Administration (EIA) also announced that US crude oil reserves increased by 2.1 million barrels in the week ending November 1, higher than analysts' forecasts (1.1 million barrels). This increase could affect oil prices in the coming time, as US crude oil supplies remain high.
Domestic gasoline prices
At 3:00 p.m. on October 31, during the period of adjusting gasoline prices, the Ministry of Industry and Trade - Ministry of Finance decided to adjust domestic retail gasoline prices.
The adjustment goal is to make domestic gasoline prices reflect the fluctuations of the world market, while maintaining a reasonable difference between E5RON92 biofuel and RON95 mineral gasoline, in order to encourage the use of biofuels according to the Government's policy, and ensure harmonious benefits for market participants.
Domestic retail prices of gasoline on November 7 are as follows:
E5 RON 92 gasoline is not more than 19,408 VND/liter.
RON 95-III gasoline is not more than VND 20,503/liter.
Diesel oil not more than 18,148 VND/liter.
Kerosene not more than 18,833 VND/liter.
Fuel oil not exceeding 16,461 VND/kg.
The Ministry of Finance has just proposed to cut environmental protection tax on gasoline by half, jet fuel by 70% and kerosene by 40%, lasting until the end of 2025.
The policy of reducing environmental protection tax on gasoline has been applied since April 2022. Currently, this tax is still reduced by 50%, equivalent to VND2,000/liter of gasoline (excluding ethanol) and VND1,000/liter of diesel. However, this policy will expire at the end of this year, causing the environmental protection tax on gasoline to return to the ceiling from the beginning of next year.
To ensure stable growth, the Ministry of Finance has proposed extending this tax reduction policy until the end of next year. The aim is to help stabilize domestic gasoline prices, curb inflation and increase consumer price index (CPI).
According to the proposal of the Ministry of Finance, the environmental protection tax on gasoline and other fuels in 2025 will remain at the current reduced level. Specifically, the tax on gasoline (except ethanol) will be 2,000 VND/liter; on jet fuel, diesel, fuel oil, and lubricants will be 1,000 VND/liter; on grease will be 1,000 VND/kg; and on kerosene will be 600 VND/liter.
From 2026, environmental protection tax will return to the prescribed ceiling level, with the following tax rates: gasoline (except ethanol) is 4,000 VND/liter; jet fuel is 3,000 VND/liter; diesel, fuel oil, and lubricants are 2,000 VND/liter; kerosene is 1,000 VND/liter; grease is 2,000 VND/kg.
