Gasoline prices under pressure to increase tomorrow

If the Price Stabilization Fund is not used, domestic gasoline prices may increase by 100-300 VND per liter in tomorrow's adjustment period.

June 5 is the time for domestic retail gasoline prices to be adjusted. According to key businesses in the North, due to the recent import price changes, the current selling price of each liter of gasoline on the market is about 300 VND lower than the cost price.

Illustration photo.

Data on finished product prices in the Singapore market released by the Ministry of Industry and Trade also shows that the average price of RON 92 gasoline per barrel is around 63 USD, an increase of nearly 2 USD per barrel compared to the average price in the previous cycle (May 20). This puts pressure on retail prices to increase in tomorrow's adjustment period.

However, the operator still has the source of the Petroleum Price Stabilization Fund, when the fund's expenditure has been mostly reduced to 0 VND in the previous 2 operating periods (May 5 and May 20), while still regularly deducting 300 VND from the selling price. In tomorrow's operating period, if this fund is released, the selling price may remain the same.

In the previous management period (May 20), the management agency decided to reduce the retail price of domestic gasoline and oil products. Gasoline prices decreased by 210 VND per liter, to 17,060 VND per liter. Oil products also decreased by 6-340 VND per liter, kg depending on the type.

Since the beginning of the year, domestic retail gasoline prices have undergone 10 adjustments, including 3 consecutive price reductions.

At the regular Government press conference in May, Deputy Minister of Industry and Trade - Do Thang Hai assessed that the operation of the Petroleum Price Stabilization Fund is being carried out in accordance with the spirit of Decree 83, promoting efficiency by partly avoiding shocks for consumers due to sudden price increases. However, given that the fund still has some limitations, Mr. Hai expressed his personal opinion that this fund should be gradually abolished, so that prices gradually move in harmony with the market.

According to VNE