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Tuesday, June 18, 2024

Trade Ministry says fuel supply adequate until end-Mar

The Saigon Times

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HCMC – Given the current volumes of fuel imports and stockpiles, Vietnam has enough fuel supply for the local market until the end of this month, according to a Ministry of Industry and Trade official.

Do Thang Hai, Deputy Minister of Industry and Trade, confirmed this at a Government press briefing yesterday, March 3, amid concerns over fuel undersupply in the country and many local gas stations having to shut down over inadequate fuel replenishment.

The fuel supply from domestic production meets 70-75% of the demand, even up to 80% sometimes. Domestic fuel production mainly comes from the Dung Quat and Nghi Son refineries.

In early January, due to financial woes, Nghi Son Refinery and Petrochemical LLC cut the output of its refinery to 80% and the refinery is now operating at 55-60% capacity. This has affected the domestic fuel supply, as the volume of fuel supplied to local fuel wholesalers under signed contracts declined.

To make up for the fuel shortage after the Nghi Son Refinery cut its production capacity, the Dung Quat Refinery had to increase its capacity to 105%. However, the 5% increase has yet to make up for the fuel shortage.

Regarding a scenario of domestic fuel supply in the upcoming time, Hai said the ministry had asked 10 fuel wholesalers with a major market share to import an additional 2.4 million cubic meters of fuel in the second quarter. The move is aimed at ensuring a sufficient fuel supply for local use even if the Nghi Son Refinery’s output fails to meet the market demand after May.

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