World gasoline prices plummet, domestic prices are about to decrease

At 11:30 a.m. on January 5, the price of US WTI crude oil stood at $73.6/barrel, while global benchmark Brent crude oil was trading at $78.7/barrel. This price is much lower than the average price of finished petroleum products in the world between the price adjustment period of December 21, 2022 and the adjustment period of January 3. Specifically, the average price of finished petroleum products in the world between these two price adjustments was $89.110/barrel of RON92 gasoline and $92.513/barrel of RON95 gasoline.

Gasoline prices may decrease in the operating period on January 11.

According to the leader of a petroleum trading enterprise, world oil prices have fallen sharply in recent days, losing more than 4% in the trading session on January 3 due to pressure from weak oil demand in China after the easing of anti-epidemic measures. This leader believes that if world oil prices continue to decline, in the upcoming domestic price adjustment period, the manager may adjust the retail price of gasoline down. "The reduction depends on world oil prices from now until before the price adjustment period on January 11 and the allocation of the Price Stabilization Fund (BOG)," he said.

At the management session on January 3, the Ministry of Industry and Trade - Ministry of Finance adjusted the retail price of E5 RON92 gasoline up 332 VND/liter, selling at 21,352 VND/liter; RON95 gasoline up 347 VND/liter, selling at 22,154 VND/liter. Meanwhile, the price of diesel oil remained unchanged at 22,151 VND/liter while kerosene increased 601 VND/liter, selling at no higher than 22,767 VND/liter; mazut oil increased 107 VND/kg, selling at no higher than 13,740 VND/kg.

In this management period, the joint ministries did not make any provision for the Price Stabilization Fund for gasoline and fuel oil products, while making provision for diesel oil at the rate of 605 VND/liter (previous period: 800 VND/liter), kerosene at the rate of 200 VND/liter (previous period: 500 VND/liter). The Price Stabilization Fund was not spent on diesel oil and kerosene products, but was spent on E5 RON92 gasoline at the rate of 350 VND/liter; RON95 gasoline at the rate of 400 VND/liter; and fuel oil at the rate of 100 VND/kg.

Previously, each liter of gasoline increased by 1,045 - 1,100 VND, and oil increased by 330 - 770 VND due to environmental protection tax taking effect from 0:00 on January 1.

The Ministry of Industry and Trade and the Ministry of Finance said that the world oil market has recently been affected by factors such as the development of the COVID-19 epidemic in China and China's relaxation of epidemic prevention measures; Russia's ability to ban the supply of oil and petroleum products to countries that impose price ceilings on Russian oil; the risk of global economic recession... These factors have caused oil prices to fluctuate, but in general, they have increased.

The COVID-19 epidemic situation in the country is under control, production and business activities of people and enterprises have recovered.

In this operating period, domestic gasoline prices are affected by the increase in world gasoline prices and environmental protection tax, so in order to harmonize the interests between gasoline businesses and consumers, and stabilize domestic gasoline prices according to regulations, the Ministry of Industry and Trade - Ministry of Finance decided to reduce the BOG Fund allocation for all types of gasoline, including stopping the allocation for gasoline and fuel oil due to high prices, and implementing the BOG Fund allocation for gasoline and fuel oil to limit the high price increase compared to the previous period.

"The above-mentioned plan for managing gasoline prices aims to contribute to ensuring the implementation of the goal of controlling inflation and stabilizing the market, supporting people and businesses in the process of recovering production and business activities... minimizing negative impacts on socio-economic development, production and business activities and people's lives," the report of the Joint Ministry stated./.