Vietnamese gas traders such as Saigon Petro, PetroVietnam gas, Vinagas, Gia Dinh gas have recently decided to raise domestic gas retail price by VND5,000/a 12-kilogram cylinder due to global ongoing oil price soar and traders’ considerable losses, the Labor newspaper reported.
Other traders including Shell gas, Elf gas, and BP gas plan to apply price increase by VND8,000/cylinder in next few days; meanwhile, VT gas has no price hike intension, the Dan Tri daily said.
This is the fourth gas price soar in the country since early 2008, traders said.
From June 12, a 12-kilogram canister is priced at VND267,000-VND270,000 while a 13-kg cylinder is sold at a medium VND305,000, VnExpress reported.
This is the biggest price hike in the Vietnamese gas market, local market watchdogs said.
Many traders attributed the price rise to the surging global oil price that hit nearly US$140 per barrel by late June 11.
Mr. Do Trung Thanh, Saigon Petro Gas’s deputy sales manager, however, said that the increase in Vietnam dong/U.S. dollar exchange rate by VND330 per USD against early this month has pushed domestic gas traders to raise the retail prices in a bid to offset their losses.
Vietnam’s sole gas processor, Dinh Co supplies between 40 per cent and 50 per cent of the total gas volume marketed in the country, gas sourced from the plant is currently priced as high as the world CP price, which does not help stabilize local market, said Petrolimex’s Marketing Department’s chief.
Vietnam now has around 100 gas trading companies, including 10 bid companies that import and distribute LPG in the domestic market.
Currently, foreign-led joint venture companies hold over 50 per cent of the market. They usually adjust selling price monthly. (Labor, VnExpress, Vneconomy)
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