Is gasoline under pressure to increase prices in today's adjustment?

World finished gasoline prices have been lower than the average for the past 15 consecutive days, but the possibility of a retail price reduction still depends on the decision of the management agency, based on the balance of the price stabilization fund.

Today (April 20) is the time to announce the adjustment of retail gasoline prices according to the 15-day cycle. The updated table of finished gasoline data in the Singapore market announced by the Ministry of Industry and Trade up to April 19 shows that RON 92 gasoline has decreased slightly.

Illustration

Specifically, after a week of consecutive increases since the adjustment date of April 5, the price of finished gasoline has continuously decreased in the past three days, returning to around 48 USD per barrel at the close of trading on April 18. On average, over the past 15 days, each barrel of RON 92 gasoline costs nearly 50.5 USD, lower than the average of 51.17 USD in the previous cycle.

According to calculations by a leading enterprise, if tax tools and the stabilization fund are kept the same, gasoline prices have the opportunity to decrease by about 300 VND per liter.

“However, in the most recent adjustment, the management agency still released 800 VND per liter of gasoline to compensate for the higher base price. Meanwhile, in recent months, the price stabilization fund has been decreasing rapidly, so it is very likely that this time, the joint ministries will continue to reduce the fund release level so that the base price is close to the selling price. Therefore, it is difficult for gasoline prices to decrease on April 20,” he said.

In fact, in the adjustment on April 5, although the base price was 1,320 VND higher than the selling price per liter of RON 92 gasoline, the operator only increased the price by more than 500 VND, the remaining 800 VND was compensated by the stabilization fund. Currently, the price of RON 92 gasoline is commonly sold by businesses at 14,940 VND per liter.

Since the beginning of March, the retail price of gasoline has increased twice in a row, by a total of nearly VND1,200, after reaching a record low in the past 7 years when it fell below VND14,000 per liter in mid-February 2016.

According to VNE