Gasoline prices will decrease by 300 VND/liter from 8 PM on August 22nd.

The Ministry of Finance and the Ministry of Industry and Trade have just requested that petroleum businesses adjust gasoline prices down by at least 300 VND/liter and continue to use the Price Stabilization Fund at 300 VND/liter. This will take effect from 8 PM today, August 22nd.

According to information from the Ministry of Finance, on average over 30 days (from July 23, 2013 to August 21, 2013), although gasoline prices on the world market decreased, the difference between the base price calculated according to regulations and the current selling price of gasoline was only enough to restore the regulated profit margin and cease using the Price Stabilization Fund.

However, to contribute to achieving the goal of macroeconomic stability, the Inter-Ministerial Committee requested that key petroleum businesses adjust gasoline prices down by at least 300 VND/liter and continue to utilize the Price Stabilization Fund at 300 VND/liter.

Accordingly, from 8 PM today, the retail price of A92 gasoline (Region 1) will decrease by 300 VND/liter, from 24,570 VND to 24,270 VND/liter; and A95 gasoline from 25,070 VND to 24,770 VND/liter.

Along with gasoline prices, the inter-ministerial committee also requested businesses to adjust the price of fuel oil down by at least 257 VND/kg.

Regarding diesel fuel, the Ministry of Finance stated that if all factors constituting the base price were fully calculated according to current regulations, the domestic selling price of diesel fuel would have to increase by a maximum of 627 VND/liter. However, to maintain diesel fuel price stability and to harmonize benefits between the State, consumers, and businesses, the inter-ministerial committee requested domestic petroleum businesses not to adjust diesel fuel prices upwards, maintaining stable prices.

At the same time, wholesale petroleum businesses must temporarily reduce their regulated profit margin by 200 VND/liter (from 300 VND/liter to 100 VND/liter), allowing them to increase the use of the Price Stabilization Fund for diesel fuel by an additional 100 VND/liter (from 300 VND/liter to 400 VND/liter).

Similarly to diesel fuel, if all factors constituting the base price were fully calculated according to current regulations, the domestic selling price of kerosene would have to increase by a maximum of 1,051 VND/liter. However, to maintain kerosene price stability and harmonize benefits between the State, consumers, and businesses, the inter-ministerial committee requested domestic petroleum businesses not to adjust kerosene prices upwards, maintaining stable prices. The inter-ministerial committee also requested petroleum businesses to temporarily reduce their regulated profit margin by 200 VND/liter (from 300 VND/liter to 100 VND/liter), and allowed businesses to increase the use of the Price Stabilization Fund for kerosene by an additional 500 VND/liter (from 300 VND/liter to 800 VND/liter).

The adjustment of the standard profit margin and the use of the Price Stabilization Fund for gasoline, diesel, and kerosene will take effect from 8 PM today.

Information from the Ministry of Finance also indicates that world refined petroleum product prices have fluctuated since the last price adjustment (July 17, 2013). Specifically: gasoline and fuel oil decreased (RON 92 gasoline decreased by 2.50%; 3.5S fuel oil decreased by 1.26%). Meanwhile, diesel and kerosene increased (0.05S diesel increased by 1.56%; kerosene increased by 3.66%).

Accordingly, the average prices of various petroleum products over the 30-day period from July 23, 2013 to August 21, 2013 are as follows: RON 92 gasoline: 114.53 USD/barrel; 0.05S diesel: 123.49 USD/barrel; kerosene: 123.27 USD/barrel; 180 3.5S fuel oil: 604.53 USD/ton.

According to the business results for the first six months of the year recently announced by several companies, the petroleum business has benefited greatly from the high price of gasoline and diesel. The information that petroleum companies are profitable but are "ignoring" the opportunity to lower prices has drawn much criticism from consumers.

Due to profitability, major petroleum companies have recently been significantly increasing discounts for their distributors. Information from several distributors indicates that these companies have raised discounts and commissions to 400-500 VND/liter; in some cases, even as high as 800-900 VND/liter.

According to experts, making a profit in the petroleum business is good, but it shouldn't be "exorbitantly profitable." Dr. Nguyen Minh Phong, an economic expert, stated: "Even though petroleum businesses are state-owned and trade in goods whose prices are regulated by the state, they still need to make a profit. However, they shouldn't be allowed to make huge profits, because if they announce such huge profits now, it will reveal past fraudulent business practices or monopolistic practices that allowed them to achieve such large profits."

According to Dan Tri - MD