Fuel wholesalers Friday increased fuel retailing prices for the first time after five consecutive price cuts beginning in May. But this time they raised prices by different amounts as they are now allowed to take the initiative in proposing price adjustments .
Taking effect since 10pm Friday, the increase saw prices of A92 gasoline and diesel oil supplied by Petrolimex, the country’s largest fuel wholesaler, rise by VND400 a liter, and kerosene, VND300 a liter.
Meanwhile, PV Oil and Saigon Petro hiked prices of all fuel commodities by VND400 a liter, except for diesel oil.
In brief, A95 gasoline now fetches VND21,500 a liter, A92, VND21,000 a liter, diesel oil, VND20,300 a liter, and kerosene ranges from VND20,150 to VND20,250 a liter, depending on suppliers. (US$1 = VND20,800)
In late June, the Ministry of Finance released a document, stipulating that fuel wholesalers can propose fuel price adjustment through their own initiatives, but have to report the proposals to the ministries of finance and of industry and trade for final decision.
The ministries have recently received wholesalers’ price hike proposals, and have calculated that fuel cost prices were VND390 higher per liter than retail prices. The respective discrepancies for diesel oil, kerosene, and fuel oil were VND412, VND348, and VND71 a liter.
The administrative authorities thus gave the wholesalers the go-ahead to adjust prices in accordance with their proposals.
The wholesalers are also required to be responsible for retail prices, and report to the ministries for monitoring and supervision.
Fuel prices in Vietnam have previously been hiked twice in March and April, gaining a total of VND 3,000 a liter.
The country saw the latest fuel price cut on June 21, when oil and petrol prices were slashed by VND300 – 700 a liter.
World trend
On the world market, oil fell for the first time in eight days on concern that European governments are not doing enough to contain the worsening debt crisis, raising speculation that demand will slip, Bloomberg reported.
Crude for August delivery settled at $91.44 a barrel on the New York Mercantile Exchange, losing $1.22, or 1.3 percent.
Oil closed at the highest level since May 16 yesterday, capping a seven-day gain that’s the longest since February 24.
August futures expired at the close of floor trading. The more-active September contract dropped $1.14, or 1.2 percent, to $91.83 a barrel.
Brent oil for September settlement retreated 97 cents, or 0.9 percent, to end the session at $106.83 a barrel on the London-based ICE Futures Europe exchange, Bloomberg said.