Gas traders in HCM City have increased retail prices for third time in a month, taking prices to VND425,000 (USD20.2) for a 12-kilo canister.
New gas price hike shocks consumers
Do Trung Thanh, Deputy Head of SaigonPetro's Gas Sales Department said that the company had decided to increase gas prices by VND42,000 (nearly USD2) per 12-kilo canister beginning from February 1.
Many other gas firms in HCM City, including Vinagas and MT Gas, followed suit.
According to Thanh, the sharp price increase in domestic gas prices was the result of higher prices for gas on the world market. Gas was being traded for around USD145 per tonne this month.
Gas prices have increased by VND74,500 (USD3.54) per 12-kilo canister since early this year, representing a 20% hike on the price in late 2011.
The triple price rise has shocked consumers who had previously only experienced a once-monthly rise last year.
The Vietnam Gas Association recently uncovered a number of local gas traders who had been diluting gas supplies with dimethyl ether (DME).
Some traders have imported hundreds of tonnes of DME to adulterate their gas supplies. The chemical is often used as a solvent in mosquito and paint sprayers.
Prime Minister Nguyen Tan Dung has requested that authorities in areas prone to petrol or gas fires occur to be more vigilant.