While world gas prices continue to rise, Vietnamese traders have actually increased their imports.
Increase of VND40,000 in the first two months of the year
On February 27, the General Statistics Office of Vietnam announced that the amount of liquified petroleum gas imports for the month is expected to be around 70,000 tonnes, worth USD75 million. The total over the first two months of the year reached 142 tonnes, worth USD142 million.
Compared to the same period last year, these numbers have increased 203.6% in quantity and 216.5% in value during the two-month period.
Imports have more than doubled despite the fact that prices on the international market are higher.
What make the importing activities incomprehensible is the current high prices of gas. A 12 kg cylinder was VND382-397,000 (USD18.31-19.03) in January. With the retail prices are increasing, the current price is VND425-464,000 (USD20.37-22.24) per cylinder.
According to the statistics of General Department of Customs, in January, turnover increased USD14.9 million compared to the same period last year because of an import surplus of USD17.4 million.
To explain this, the traders blame the world gas price.
However, according to data from the General Department of Customs and General Statistics Office, the import price for gas this month is around USD1,000/tonne higher than it was in January. Last month the price was USD921/ tonne, and in December it was USD802/tonne.
Yet, in December, imports only amounted to 35,000 tonnes.
Now there is a surplus on the supply side, locking in that inventory at the current high price. If gas prices should fall, traders almost certainly pass on the price of their remaining stock to the customers.
Do Trung Thanh, Deputy Head of Business Department of Saigon Petrol Company, was cited by Nguoi Lao Dong, as saying that Vietnam Gas Association has proposed a reduction in the gas tax from 5% to 2%.