Gasoline spanrice in Vietnam surges 6%, second rise in May

The ministries of finance and trade-industry has given the green light to the second gasoline price hike this month with a 6 percent rise, bringing the retail gasoline price to VND20,100-21,030 per liter.

Following the approval from the two ministries, Vietnam National Petroleum Corporation (Petrolimex), which holds the largest market share in fuel distribution in Vietnam with 48 percent, raised the retail prices of RON 92 and RON 95 gasoline and E5 biofuel to VND20,430, VND21,030 and VND20,100 per liter, respectively, from 8:00 pm on Wednesday (1US$ = VND21,800).

This is the second consecutive price hike of gasoline this month and the third time since the beginning of the year. With the latest price increase, current gasoline prices have risen over 30 percent so far this year.

Though the two ministries also allowed local fuel wholesalers to raise the price of kerosene and diesel oil, local wholesalers, including Petrolimex, chose not to do so.

The price hike is caused by the mounting pressure of world oil prices, said the two ministries, adding that the prices of gasoline on the world market continued to rise in the last fifteen days to $83.97 a barrel.

After adding up all the taxes, fees, commissions, allotted profit rate, the base price of 92 RON gasoline are VND2,254 higher than the old rates, thus forcing the state agencies to give the go-ahead for the price adjustment, the two ministries said.

This is the 5th time adjustment of petroleum prices since the beginning of the year, after two reductions and two price surges.

On May 5, gasoline prices rose by a record rate of VND1,950 to VND19,230 per liter. It is also the longest gains of this item since March 2011.

Local gasoline price hit its peak in March 2013 at VND24,580 per liter.

Since the beginning this month, environmental protection taxes slapped on fuel and diesel oil have increased from VND1,000 to VND3,000 per liter and from VND500 to VND1,500 per liter, respectively.

Petrolimex last week announced that it had a consolidated net profit of VND388 billion ($17.85 million) in the first quarter of this year, up 77 percent compared to the same period last year.

Gasoline spanrice in Vietnam surges 6%, second rise in May

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