Gasoline prices could rise sharply tomorrow.
Gasoline prices on the world market are rising sharply, at times reaching nearly $70 per barrel.
According to data from the Ministry of Industry and Trade, the average price of finished gasoline products in the Singapore market during this cycle was $66.87 per barrel for RON 92 and nearly $69 per barrel for RON 95, an increase of 6-7% compared to the previous period. Therefore, in the upcoming price adjustment on February 3rd, gasoline and diesel prices may increase sharply.
The director of a petroleum distribution company in Ho Chi Minh City said that gasoline and diesel prices have been continuously rising, at times reaching nearly $70 per barrel. Currently, the price of gasoline imported by the company has increased by 800-900 VND per liter. Meanwhile, in previous price adjustments, the regulatory agency used the stabilization fund to keep gasoline prices unchanged. Therefore, in tomorrow's adjustment, if the regulatory agency does not use the stabilization fund, prices could increase by 600-800 VND per liter. Conversely, if the agency uses the fund and increases spending at a 50/50 ratio (partially using the fund and partially increasing prices), gasoline and diesel prices may only increase by 300-500 VND per liter.
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At the price adjustment on February 15th, the authorities decided to increase the release from the price stabilization fund to maintain domestic retail gasoline and diesel prices. The amount released from the fund for E5 RON 92 gasoline increased by 259 VND per liter; for RON 95 gasoline, it increased by 350 VND per liter. The amount disbursed from the fund for diesel also increased by 351-503 VND per liter/kg. In addition, gasoline and diesel will continue to receive an additional 300 VND per liter/kg from this fund as per current regulations.
Accordingly, the maximum retail price per liter of E5 RON 92 gasoline is 16,272 VND; RON 95 gasoline is 17,603 VND. Prices for other petroleum products range from 13,275 to 14,909 VND per liter/kilogram depending on the type.
The inter-ministerial committee explained that maintaining domestic retail prices aims to manage gasoline and diesel prices according to a market mechanism with state regulation, control inflation, stabilize the macroeconomy, and reduce input costs for manufacturing and business enterprises.
Previously, the Price Management Department (Ministry of Finance) announced that the balance of the Fuel Price Stabilization Fund at the end of 2018 was over 3,500 billion VND, a decrease of 1,600 billion VND compared to the same period in 2017. In 2018, the third quarter was the period when the most of the Stabilization Fund was used (approximately over 773 billion VND).
