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Will gasoline prices increase or decrease tomorrow?

In Decree No. 95/2021/ND-CP, the time to regulate petrol prices is on the 1st, 11th and 21st of every month. For operating periods that coincide with a holiday or public holiday according to the regulations of the State, the operating time shall be postponed to the next working day after the holiday or public holiday. Therefore, April 11 coincides with the holiday to make up for the death anniversary of the Hung Kings, so the adjustment period will move to April 12.

Data from the Ministry of Industry and Trade shows that the average price of finished gasoline on the Singapore market was updated to April 7 with RON 92 being $118.00 a barrel, RON 95 being $121.53 a barrel, down 5- 7% compared to the previous correction. Similarly, oil price also dropped to around 130 USD a barrel.

World gasoline prices continuously plummeted, putting downward pressure on domestic gasoline prices - Photo 1.

Average price of finished petroleum products on the Singapore market from April 1 to April 7

Oil prices last week fell due to many factors. The first is a two-month ceasefire in Yemen that allows fuel imports into areas held by Yemen’s Houthi group, raising hopes that supplies will stabilize in Saudi Arabia.

The second is the decline in demand from the world’s top oil consumer China. The strong spread of Covid-19 forced the country to expand blockade measures in the city of Shanghai – the country’s leading financial center. The blockade in this city of more than 26 million people also means that the demand for energy consumption, especially oil, decreases.

Third, the world oil price last week was forced to plunge quickly when the market received information that members of the International Energy Agency (IEA) had come to a consensus to release up to 120 million barrels of oil from the oil market. its strategic oil reserves to “hold down” oil prices. Of these 120 million barrels of oil, the US contributed 60 million barrels (coming from the commitment package of 180 million barrels last week), Japan released 15 million barrels, South Korea 7.23 million barrels,… and the rest are from some other countries.

240 million barrels of this oil will be released by the US and other members of the IEA within 6 months. Accordingly, every day the world will receive about 2 million barrels of oil from the strategic reserves of the IEA.

In the past 10 days, the world gasoline price has continuously recorded a decrease. Therefore, at tomorrow’s price management period, it is forecast that petrol prices will be adjusted down by about 600-800 VND/liter.

The specific reduction will depend on the inter-Ministry of Finance – Industry and Trade setting up a stabilization fund. In the context that the Environmental Protection Tax has been reduced, it is likely that the operating agency will increase the setting up of a stabilization fund because this fund at many importers is in a negative state.

At the operating period of April 1, each liter of gasoline decreased by VND 1,030-1,040 while diesel increased by VND 1,450. Accordingly, the price of gasoline E5 RON 92 dropped to 27,300 dong, gasoline RON 95 was 28,150 dong. Also from April 1 to the end of the year, domestic retail petrol and oil prices are entitled to a 50% reduction in environmental protection tax according to the Resolution of the National Assembly Standing Committee.

In the above operating period, according to Resolution No. 18/2022/UBTVQH15, the environmental protection tax has been allowed by the Standing Committee of the National Assembly to reduce from 700-2,000 VND/liter/kg, but due to the world price of gasoline, especially the price of petroleum products. Because of the high rate of increase, the Inter-Ministry of Industry, Trade and Finance had to use a combination of BOG petrol and oil fund tools at a reasonable level to reduce gasoline prices and limit the increase of oil prices compared to the increase of world prices.

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