Gas market chaos

(Baonghean) - Since June 1, retail gas prices on the market have dropped quite sharply, from 13,000 - 14,000 VND/12kg cylinder, down to around 290,0000 VND/cylinder. But in Nghe An, the gas market is showing signs of "price chaos".

On the afternoon of June 2, according to the reporter's records, gas prices in the Vinh City market were not consistent. In general, the price of a 12kg cylinder fluctuated around 280,000 - 290,000 VND; the 48kg cylinder, often used for collective kitchens, restaurants and hotels, was 1.3 million VND, a decrease of 1,000 - 1,200 VND per kilogram of gas, depending on the brand compared to the end of May. Particularly, the listed price of Petrolimex gas on June 2 was 325,000 VND/12kg cylinder. However, at some agents, the retail price of gas to consumers decreased sharply, selling for only 250,000 VND/cylinder. Ms. Nguyen Thi Thanh Chung - owner of Thanh Chung gas agent in Hung Dung ward said that she is currently selling Ocean brand gas. In May, the retail price of gas for a 12kg cylinder of this company was 270,000 - 280,000 VND/cylinder, but in early June, the price dropped to only 250,000 VND/cylinder. In the summer, gas consumption decreased quite sharply,...

Employees of a gas store in Vinh City prepare to deliver goods to customers.

At Thu Hang gas store on Nguyen Sy Sach street, a sales staff there said that the current gas price has decreased by 13,000 VND/cylinder. Specifically: Petrolimex is 325,000 VND/cylinder while other brands such as Petronas and Petro Saigon are priced at 288,000 VND/cylinder.

We learned that the gas market is currently quite chaotic. A gas store owner in Quan Bau ward said: “The gas market is currently chaotic; there are gas companies offering wholesale prices lower than the market price, but we do not agree because of the instability related to the cylinder shell.”

Talking to us, a representative of a gas company in Vinh City said: “The domestic gas price has turned down because the contract price (CP price) for delivery in June has decreased quite a bit. The average price for June 2015 has just been announced at 422.5 USD/ton, down 47.5 USD/ton compared to the previous month, so the domestic gas price has been adjusted down accordingly. This adjustment is to ensure compliance with market rules and consumer rights. However, for the Nghe An market, in addition to the reason that the world gas price has decreased, recently, due to unhealthy competition between companies, the price has decreased sharply. In May, our selling price to agents was less than 200,000 VND/12kg cylinder, below cost price, but because of competition, we had to accept it. With this price, many gas production and trading companies are suffering losses.”

Thu Huyen