Petroleum traders in Vietnam are moaning over losses from their businesses as they have to maintain selling prices.
The Government has requested that petroleum traders not to raise prices through the first quarter of the year. The request was due to a concern for inflation, as well as to ensure that the nation meets its economic targets.
However, petroleum prices on the global market have increased. In addition, the growing foreign currency exchange rate has been become a large burden to local traders.
The country imports about 70% of its petroleum.
Vietnam National Petroleum Corp (Petrolimex), the country’s largest petroleum trader, said it is losing VND2,020 for each litre of gasoline sold.
According to the corporation’s own estimates, its trading losses are around VND1,000 per litre of fuel oil.
By the end of last November, Petrolimex had lost VND800 billion (USD40 million) due to price hikes in the world market. In the meantime, last year’s losses from volatility in foreign currency exchange rates has been estimated at VND715 billion (USD35.75 million).
A leader of Military Petroleum Company (MIPECO) admitted, “We have not yet calculated our losses. But the more we sell, the more losses we incur.”
Some traders have suggested that the Government adjust its petroleum price regulation in order to ease losses.
At present, a litre of 92 octane gasoline is sold for VND16,400 (USD0.82) in Vietnam. However, the price is lower than in other countries in the region, such as Thailand, where it is at (VND19,800/litre), or China where it sells for (VND20,000/litre).
Many traders complained that petroleum prices in Vietnam have been remained unchanged for too long. This has even resulted in petroleum smuggling along the Cambodian border.
