Gas prices on the increase
In HCMC, the gas traders have increased prices by VND10,000 (USD0.48) per 12 kilo cylinder.
Le Thanh Binh, a retail trader in HCMC, said that if one gas company raises their prices all of the retail traders will follow. "Consumers shop around for the best prices," he explained.
Consumers have been advised by traders to buy gas now, since prices will likely increase by VND40,000-50,000 by August.
Tran Cong Thanh, an owner of gas distribution company, said that since July 20, many enterprises have suddenly reported shortages and increased their prices. Some other gas companies have kept prices stable, but cut 40-50% the amount of gas to their agents. "Many agencies have been asking for double the volume but we just don't have enough to supply their demands, not to mention the fact that the containers also seem to be disappearing. Now we are only holding about a third of the gas as normal," he said.
Deputy Director of Thu Duc Gas-Liquefied Petroleum Distribution Company, Chu Van Duc, said the only reason for increasing selling prices to agents has been a serious shortage.
The director of another gas company also said that, though he had placed orders for 300 tonnes of gas with Petrol Vietnam Southern Gas JSC., a distribution company run by Dung Quat oil refinery, they would not fill his order.
The shortage was caused when the price of gas on the international market fell early this year by nearly VND100,000 per 12-kilo cylinder. Gas companies also limited their imports, waiting for the world price to fall further, but prices on the world market suddenly shot up. The result has been several companies hording gas to make a profit.
According to some gas traders, the situation in the northern and central regions is even more complicated. In the central region prices have increased by VND20,000-30,000 while the prices in northern region is up by VND12,000-15,000 per cylinder.
