Today, the price of gasoline may increase by 600

Data from the Ministry of Industry and Trade shows that the retail gasoline price on the Singapore market was updated on May 19 with RON 92 at 141.6 USD/barrel; RON 95 gasoline was 146.7 USD/barrel, a sharp increase compared to May 10 (RON 92 gasoline was $138.59/barrel, RON95 gasoline was 142.6 USD/barrel).

A leader of a petroleum business in Hanoi said that the continued increase in world oil prices will push up the price of finished gasoline, causing the retail price of gasoline to go up in the country. In this operating period, it is inevitable that gasoline prices will increase. How much the increase depends on the management agency setting up or spending to use the price stabilization fund, but it is expected in the range of 600 – 1,000 VND/liter. If this happens, gasoline prices will surpass the previous record of 30,000 VND/liter.

According to regulations, the petrol price management period will take place on May 21. However, because the price management period falls on a holiday, it should be adjusted at 3pm today 23/5.

During the operating period on May 11, the Inter-Ministry of Industry, Trade and Finance adjusted gasoline prices in the direction of increasing all gasoline products. Specifically, gasoline E5RON92 increased by 1,491 VND/liter, the retail price was 28,959 VND/liter; RON95 gasoline increased by 1,554 VND/liter, the selling price was not higher than 29,988 VND/liter.

Similarly, the price of diesel oil increased by 1,120 VND/liter, sold at 26,650 VND/liter. Kerosene increased by 1,340 VND/liter, sold at 25,168 VND/liter. Particularly for mazut oil, the price remained unchanged, selling at no higher than VND 21,560/kg (stable compared to the current selling price).

The operator makes an appropriation for BOG Fund for E5 RON92 products at 100 VND/liter (last period was 300 VND/liter) and RON95 at 100 VND/liter (previous period was 400 VND/liter), oil diesel at 100 dong/liter, kerosene stopped making provision (previous period was 119 dong/liter) and fuel oil continued to not make provision.

Expenditure of BOG Fund for kerosene at 300 dong/liter (previous period not spent), madut oil at 33 dong/kg (previous period was not spent), other petroleum products were not spent.

According to economic expert, Dr. Nguyen Bich Lam, former director of the General Statistics Office, gasoline costs account for about 3.52% of the total production costs of the whole economy. According to calculations, a 10% increase in gasoline prices will reduce GDP by about 0.5% – a rather large reduction, reflecting the very strong impact of gasoline price fluctuations on economic growth.

In addition, the domestic economy is highly dependent on imported raw materials from outside, with the proportion of cost of imported materials in the total cost of raw materials of the whole economy at 37%. When the world gasoline price increases, it will increase the price of imported and domestic raw materials.