A number of petroleum wholesalers proposed a price hike of VND1,300 per litre of perol to the Ministry of Finance on September 7, which, if approved, would bring prices to a record high.
The proposal was confirmed to DTiNews by a representative from a petroleum firm based in the south.
If the ministry approves the proposal, retail prices of A92 grade petrol will set a new record high, exceeding VND24,000 per litre. This will be also the 5th consecutive petrol and oil price increase over the last month and a half, bringing the average frequency of price increases to one every ten days since the date when petroleum traders were allowed to set their own prices.
“The increase of VND1,300 per litre is based on the average of petrol and oil prices over the last 30 days. We are waiting for the ministry’s feedback,” he said.
The proposal comes in the wake of volatility in global petrol and oil prices, which remain at high levels. Over the past month petrol prices in Singapore saw their lowest levels, USD118.7USD per barrel. However, two days later, the price bounced back to USD122.39, keeping the monthly average price for A92 petrol high.
According to the Ministry of Finance, “Allowing petroleum traders to decide their own prices is an attempt at creating healthy competition, but it does not mean that the Government will give up management of the industry. They are only permitted to adjust the prices by 7%. They also have to register with management agencies before any price adjustment.”
Petroleum traders continue to complain over losses, although oil and petrol prices have been raised four times just since July 20.
They have said they now suffer from a loss of between VND500-800 per litre of petrol or oil, and that the support of the Petroleum Price Stabilisation Fund, with subsidies of VND500 per litre of petrol and VND300 per litre of oil, is not sufficient to cover those losses.
