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Monday, July 15, 2024

Fuel prices expected to rise Tuesday

By Le Hoang

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HCMC – Gasoline prices are expected to rise after a series of cuts while the local market is experiencing a fuel supply shortfall and the temporary closure of 54 gas stations in HCMC.

On October 11, the Ministry of Industry and Trade plans to raise the fuel transport expense included in the fuel price. In the meantime, the HCMC Department of Industry and Trade has told key fuel wholesalers to prepare sufficient supplies.

One barrel of E5 RON 92 bio-gasoline is now priced at US$91.84, RON 95-III gasoline at US$94.67 and diesel oil at US$134.8, according to data from the ministries, to be used for calculating the retail prices in this review period. Meanwhile, the average world price of petroleum products during the previous review period ten days ago was US$89.17 per barrel of E5 RON 92, US$92.64 per barrel of RON 95-III and US$119.68 per barrel of diesel oil.

Domestic fuel prices will rise along with global ones, with an expectedly slight increase in gasoline prices and a dramatic rise in diesel price. Accordingly, the gasoline price is expected to rise by VND200-300 per liter and the diesel price by VND1,700-2,000. If the two ministries tap the stabilization fund, the price rises would be not that high.

Regarding the supply shortfalls that led 54 gas stations to suspend operations in HCMC, the HCMC Department of Industry and Trade asked the key wholesalers to prepare supplies for the suspending stations.

Petrolimex, the country’s leading fuel trading company, has mobilized about 80 tank trucks to transport fuels from warehouses to retailers.

The department said that the city was having problem with fuel supply because of fuel import disruptions and transport woes induced by recent storms and floods.

A number of retailers have no choice but to halt operations due to the scarcity of fuels, especially at rush hour when the tank trucks are not allowed to enter the city.

The HCMC government has allowed the trade department to join hands with the traffic police and the Department of Transport to allow tank trucks to transport fuels to gas stations during rush hours.

Many retailers in southern Vietnam have either closed their gas stations or limited sales to customers because of the ongoing undersupply and a woefully low discount rate offered by fuel wholesalers.

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