Gasoline prices may increase sharply

Data from the Ministry of Industry and Trade showsprice of finished gasolineAverage price on Singapore market updated to May 6 with RON 92 (used to blend E5 RON 92 gasoline) up to137.36 USDone barrel; RON 95 gasoline up141.65 USDa barrel. Both of these are up sharply from the previous operating period.

The leader of a major enterprise in Ho Chi Minh City said that the European Commission's embargo on Russian oil continues to push oil prices up. Not to mention, China's tightening of anti-epidemic measures, making trade difficult, also affects oil prices. Therefore, this management period, he said that it is difficult to avoid increasing gasoline prices.

Illustration photo.

"If the management keeps the price stabilization fund unchanged, gasoline prices will increase by about VND1,600 per liter, and oil by VND1,200 per liter," said a leader of a key business in Ho Chi Minh City.

In case the management agency sets aside or increases expendituresstabilization fund, gasoline prices may increase by 800-1,000 VND per liter.

Currently, the highest price per liter of E5 RON 92 gasoline is 27,460 VND and the highest price per liter of RON 95 gasoline is 28,430 VND, after increasing by 330-440 VND per liter on May 4.

Sharing the same view, leaders of petroleum enterprises in Hanoi said that this time, the operator can use more of the Price Stabilization Fund to avoid a shock increase. However, the price of petroleum will still be adjusted at a high level.

In the world market, last week, Brent oil prices increased by nearly 4% and WTI oil prices increased by about 5%. Despite the increase in oil prices, the Organization of the Petroleum Exporting Countries and its allies (OPEC +) raised its June production target to only 432,000 barrels a day. This decision by OPEC +, according toOilprice, meaning no more oil will come to Europe to replace the sanctioned Russian barrels. The crude oil embargo will come into effect in six months and the refined products embargo will come into effect at the end of the year, according to EC President Ursual von der Leyen.

Gasoline prices are normally adjusted on the 1st, 11th and 21st of each month. However, the recent adjustment period fell on a holiday, so the gas price was adjusted on May 4.