Gas traders in Vietnam have decided to raise the retail price of liquefied petroleum gas (LPG) by VND20,000 against that in early September, a new record in the country, following the global hike and domestic supply scarcity, local media reported.
This is the third price hike within only 12 days in Vietnam; the first was made September 18 and the second September 25.
From September 30, each of 12-kg and 13-kg canisters will be sold at between VND206,000 and VND217,000, depending on suppliers. The latest price hike drove gas price up VND10,000 each 12-kg cylinder.
The global gas price for current delivery is up over US$70 per ton against that in early September while imported gas price went up over US$100 per ton, gas traders said.
The soaring gas price is attributed to scare supply mainly triggered by Thailand’s gas export stop, pushing gas traders to switch to other suppliers in Singapore and Malaysia with higher costs, said Nguyen Phuc Dai, Vinagas director.
Thailand often exported 20,000 ton of gas per month to Vietnam, fulfilling nearly 50 per cent of the country’s demand.
Moreover, Vietnam’s unique gas processor, Dinh Co in southern Ba Ria - Vung Tau province will be standstill between October 1 and 21 for periodical maintenance, slashing 20,000 tons of supply, Dai added.
Vietnam now has around 100 gas trading companies, including 10 big firms responsible for importing and distributing LPG in the local market.
Currently, foreign-led joint venture companies hold over 50 per cent of the market. They usually adjust selling price monthly.
Vietnam is estimated to use up nearly one million metric tons annually in coming years. In 2006, the country consumed around 800,000 tons with about 60 per cent being imported. (US$1=VND16,163) (Local sources)
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