Data from the Ministry of Industry and Trade shows that the average price of finished gasoline products in the Singapore market, updated as of October 19th, was $95.89 per barrel for RON 92 and $98.63 per barrel for RON 95, both up 9% compared to the previous period. Oil prices also fluctuated sharply, at times rising above $96 per barrel.

Illustrative image. Source: Internet

According to the head of a major fuel distribution company in Ho Chi Minh City, world gasoline prices have risen sharply in recent days. If the authorities do not draw from the Price Stabilization Fund, gasoline prices could increase by around 1,400-1,600 VND per liter in tomorrow's price adjustment. Diesel prices could also be adjusted by 200-1,200 VND. This could be the fourth consecutive increase in just over a month. Therefore, if gasoline prices increase as predicted tomorrow, each liter could reach nearly 25,000 VND – the highest level in the past five years.

Conversely, if the regulatory agency allocates and utilizes the Price Stabilization Fund at a 50/50 ratio (i.e., 50% used, 50% reduced), gasoline prices would adjust by around 700-800 VND per liter. Diesel prices, on the other hand, would increase by 200-600 VND per liter.

Sharing the same view, business leaders in Hanoi said that oil prices are fluctuating sharply; however, given the current situation, the authorities may use the reserve fund instead of allowing a sharp increase.

According to the leaders of the key businesses, since the beginning of the year, gworld oil pricesPrices have increased by 60-70%. This is due to shortages of coal and natural gas in China, India, and Europe, forcing many countries to switch to oil. Meanwhile, many oil-supplying countries are unable to rapidly increase production to meet agreed-upon supply levels, driving oil prices higher.

In the price adjustment on October 11th, gasoline prices increased by 930-970 VND per liter, and diesel prices increased by 510-980 VND per liter. Accordingly, RON 92 rose to 21,680 VND per liter, and RON 95 to 22,870 VND per liter. Kerosene increased to 16,620 VND per liter, diesel to 17,540 VND per liter, and fuel oil to 17,090 VND per kilogram.

The regulatory agency continues to not allocate funds from the price stabilization fund for all commodities, but disburses 950 VND from the fund for E5 RON 92 gasoline (an increase of 100 VND per liter compared to the previous period), 150 VND for diesel fuel, and 100 VND for kerosene.