Petrol price today 25/5: Suddenly increased sharply

Petrol price today 5/25: Strong increase again, Europe is ready to embargo Russian crude oil

The US WTI crude oil price this morning (May 25) turned to rise after worries about tight supply, outweighed concerns about an economic recession and China’s Covid-19 containment policy.

In the early morning hours of May 25, 2022, according to Vietnam time, on the New York Mercantile Exchanghe, the price of WTI light sweet crude oil delivered in July, 2022 stood at 110.62 USD/barrel, up 0.85 USD/barrel. bin in session.

Meanwhile, the price of Brent oil for July delivery in July 2022 stood at $114.19/barrel, up $0.63/barrel during the session.

Ending the late session on 24/5, Brent crude oil advanced 14 cents to 113.56 USD/barrel; WTI oil fell 52 cents to $109.77 a barrel.

Oil prices rose sharply on May 25 in the context of the crude oil market recording the possibility that the EU was about to reach a consensus on imposing an embargo on Russian crude oil.

German Economy Minister Robert Habeck stressed that: “A Russian oil embargo in response to the conflict with Ukraine is within reach.”

Oil price today The strong increase was also due to the continuous weakening of the dollar and the major commercial and economic centers of China still keeping their plans to open and return to normal when the number of Covid-19 infections was well controlled.

However, the rally of oil prices today is also being restrained by the news that OPEC + is ready to sharply increase production, higher than the agreed level and reach a higher output level than before the cut in April 2022.

In the domestic market, on May 23, the Inter-Ministry of Industry, Trade and Finance announced the base prices for petroleum products for the price management period from May 24.

Accordingly, at the operating period on May 23, the inter-Ministry of Industry and Trade – Finance decided to stop setting up and spending the petrol price stabilization fund (BOG Fund) for gasoline so that the domestic gasoline price would be lower than the average price. lower than the increase in world gasoline prices. In addition, the inter-ministerial decision to increase the setting up of the BOG Fund for oils in order to maintain the BOG Fund to have operating tools in the near future.

Specifically, to set up the BOG Fund for gasoline products E5 RON 92 at 0 dong/liter (previous period was 100 dong/liter) and RON 95 gasoline at 0 dong/liter (previous period was 100 dong/liter). liter), diesel at 300 VND/liter, kerosene at 300 VND/liter and fuel oil at 400 VND/kg. Expenditure of BOG Fund for E5 RON 92 gasoline at 100 VND/liter and RON 95 gasoline at 300 VND/liter (previous period was not spent), oil products were not spent.

On May 25, the retail price of gasoline in the country is as follows:: After making appropriation and spending to use the Petroleum Price Stabilization Fund, the current selling prices of commodities Petroleum Common consumption in the market is as follows: E5 RON 92 gasoline price is not higher than 29,633 VND/liter; RON 95 gasoline price is not higher than 30,657 VND/liter; the price of diesel oil 0.05S is not higher than 25,553 VND/liter; the price of kerosene is not higher than 24,405 VND/liter; price of mazut oil 180CST 3.5S is not higher than 20,598 VND/kg.

On the afternoon of May 23, Chairman of the National Assembly’s Economic Committee Vu Hong Thanh also stated “countermeasures” on taxes, responding to a sharp increase in domestic gasoline prices. At the inspection report, Chairman of the National Assembly’s Economic Committee said that the upward trend in basic commodity prices, combined with the impact of the escalating Russia-Ukraine conflict, caused energy prices to rise to a record high. All international organizations forecast the scenario that the average oil price in 2022 will increase by about 20-30 USD (ie about 30-40%, from the average of 69 USD/barrel in 2021 to the average of 90-100 USD in 2021. USD/barrel in 2022). Golman Sachs Bank forecasts that oil prices may rise to $125/barrel in the third quarter of 2022.

Accordingly, petrol prices increase will greatly affect domestic production costs, putting pressure on inflation in 2022. In the current context, the Economic Committee said, there are opinions that besides paying special attention to risks For inflation from outside, it is necessary to study the scenario of continuing to reduce excise tax to cope in case of large fluctuations in world oil prices and higher increases, as well as to postpone and delay the increase of taxes. costs to stabilize the prices of other consumer goods.