Gasoline under strong price pressure tomorrow

The world oil price has been continuously increasing sharply, at times reaching 65 USD per barrel, putting pressure on domestic gasoline prices before tomorrow's adjustment period.

December 20 will be the time for adjusting gasoline prices for the new cycle. According to the data on finished product prices in the Singapore market published by the Ministry of Industry and Trade, the average price of RON 92 gasoline is at 63.33 USD per barrel, up 9% compared to the previous cycle (over 58 USD per barrel). Notably, in recent days, gasoline prices have increased to over 65 USD per barrel.

World gasoline prices are increasing sharply. Photo: Ngoc Thanh

Many key businesses in Ho Chi Minh City said that gasoline prices are on the rise and world oil prices are also on the rise after the decision to cut production on November 30 from OPEC members, so gasoline prices are unlikely to reverse down. Therefore, according to business leaders in Ho Chi Minh City, if the management agency keeps taxes and fees unchanged in this adjustment, gasoline and oil prices will increase sharply. On the contrary, if the management agency releases more stabilization funds, prices may be less tense. However, up to now, the gasoline stabilization fund in businesses is not much left, so the possibility of a high increase is possible.

“If the fund is not released, the gasoline price will increase by around 700-900 VND per liter and the oil price will also be adjusted up by about 700 VND. If the stabilization fund is used, the gasoline price may increase by 300-500 VND per liter,” said a leader of a key enterprise in Thu Duc.

In the previous adjustment period, the management agency had a headache about adjusting the gasoline price appropriately. Finally, the Ministry of Finance - Industry and Trade decided to increase by no more than 304 VND per liter, with RON 92 up to a maximum of 16,675 VND. E5 gasoline increased by 301 VND and not higher than 16,226 VND per liter. Oil products increased in price from 163 VND to 275 VND per liter, kg depending on the type.

Along with that, the Joint Ministry also decided to keep the same level of the Petroleum Price Stabilization Fund for each product (VND300 per liter, kg). The expenditure level for the Stabilization Fund was increased to VND500 per liter for RON 92 gasoline, VND450 per liter for E5 gasoline and VND250-400 per liter, kg depending on the type of oil.

Since the beginning of the year, this item has undergone 21 adjustments, with 12 increases and 10 decreases.

According to VNE