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Vietnam fears fuel price rises
Domestic petrol prices look set to rise again following world price rises.
Key petrol distributors on October 19 all confirmed petroleum prices have been increasing, which has meant difficulties for their business.
In particular, they are incurring heavy loss with diesel sales. Representative from Petec say that with the current retail price, it is incurring the loss of 1000 dong per litre sold. Meanwhile there is also no profit in petrol.
Dong Thap Petroleum Trading Company has reported the loss of 400 dong per litre
The Vietnam National Petroleum Corporation (Petrolimex) has confirmed it is incurring a loss with both diesel and petrol.
The world’s oil and petrol price increases have led to difficulties for domestic distributors who still cannot raise sale prices. The world’s price accounts for 63 percent of the fuel sale price.
Petroleum distributors say the world price only slightly decreased in September and in the first five days of October, while since then prices have been on the rise.
With A92 petrol, in Singapore, the product’s price reportedly hit $77.76 per barrel on October 16, an increase of $8.09 per barrel, or 11 percent, over 10 days ago.
Meanwhile the 0.25S diesel price has surged to $82.72 per barrel, an increase of $10 per barrel, or 13 percent, over 10 days. Dong Thap Company said diesel prices rose steadily and sharply by nearly $2 per day in the last five days.
According to the company, the petrol cost price would be 15,500 dong per litre which is 300 dong per litre higher than the current retail price. The diesel cost price would be 13,700 dong, meaning a 900 dong per litre loss.
In fact, the actual loss they have to incur would be much higher as they still have to cover other expenses, including sale agent commission.
One petroleum distributor in the south told VietNamNet his company may ask permission for an increase.
“We may ask for the 500 dong per litre increase on October 20,” representative of the company, which holds four percent of the market share, said.
Meanwhile, deputy general director of Petrolimex, which holds 60 percent of the market share, Vuong Thai Dung, remains cautious when talking about possible price increases.
“We have to wait a little longer and we will make a decision later,” Dung said.
Other petrol distributors, though complaining about the world’s price increases, have not made any decision relating to the sale price adjustment.
Phuoc Ha
vietnamnet
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