Gasoline prices are expected to continue to increase

From the beginning of 2022 until now, the domestic gasoline price has increased 10 times, equivalent to an increase of 6,741-6,774 VND/liter depending on the type. In the price management period on June 1, the price of RON95 gasoline is forecasted to exceed the mark of VND 31,000/liter because the world gasoline price has not shown any signs of cooling down in the past few days.

Running out of stabilization funds

Last week, the world oil price had strong increase days. For the whole week, Brent crude oil price increased by 6% and WTI crude oil price increased by 1.5%. As of the end of May 30, WTI oil price increased by 0.4% to 115.5 USD/barrel. The price of Brent oil for July delivery increased by 1.73% to 119.4 USD/barrel. Currently, the price of Brent oil has hit a two-month high.

According to data from the Ministry of Industry and Trade, updated to May 27, retail gasoline prices in Singapore continued to increase sharply compared to the previous price calculation period. Specifically, the price of RON 92 gasoline used to prepare E5 RON 92 gasoline has an average price of $146.08/barrel, while RON 95 gasoline is $154.6/barrel. It is forecasted that on June 1, the domestic gasoline price may continue to increase by 400-800 VND/liter, bringing the price of RON95 gasoline to surpass the 31,000 VND/liter mark. However, depending on the level of setting up and spending for the petrol price stabilization fund of the operating agency, the actual adjustment level will be different.

Previously, in the latest price management period on May 23, the price of E5RON92 gasoline increased by 680 VND/liter, to 29,639 VND/liter; RON95 gasoline increased by 670 VND/liter, to 30,653 VND/liter. At this operating period, the executive agency spent the Petroleum Price Stabilization Fund for E5RON92 gasoline at 100 VND/liter and RON95 gasoline at 300 VND/liter. According to the Ministry of Industry and Trade, the petrol price stabilization fund is used flexibly to limit the increase in domestic gasoline prices while ensuring the maintenance of the fund to have room to manage gasoline prices in the coming period in the context of gasoline prices. From now until the end of the year, there will be complicated and unpredictable developments in the world oil market.

However, according to the reporter’s research, the Petroleum Price Stabilization Fund is now exhausted, the fund balance at many petroleum enterprises (DN) is at a negative level. As at the Vietnam National Petroleum Group, as of May 23, the fund was negative 15 billion dong.

As an enterprise in the field of passenger transport, Mr. Do Van Bang, Director of Minh Thanh Phat Trading and Service Co., Ltd., said that the company has encountered many difficulties due to the Covid-19 epidemic. is still limited, but fuel costs are too high, making it difficult for businesses to balance cash flow to maintain operations.

Experts and National Assembly deputies unanimously proposed to continue using tax tools for environmental protection and special consumption tax to control gasoline prices (Photo: TAN THANH)

Proposal to continue lowering taxes and fees

According to the Resolution of the National Assembly Standing Committee, the environmental protection tax rate for gasoline (except ethanol), diesel oil, mastic oil, lubricating oil and grease has been reduced by 50% from April 1 to the end of 2022. However, before the development of the world market, the price of this commodity has not stopped going up, National Assembly delegate Tran Hoang Ngan (Ho Chi Minh delegation) said that there must be a tool to control and control the increase in gasoline prices. oil, such as continuing to reduce environmental protection tax, excise tax. He suggested that the National Assembly take time to discuss this issue. If fuel prices are not controlled, there will be a situation of “dropping water with the rain”, directly affecting people’s meals, which have faced many difficulties after more than 2 years of the pandemic.

Talking to reporters, economist Ngo Tri Long, former director of the Institute for Price Market Research (Ministry of Finance), said that in the context that the economy is in the early stages of recovery, gasoline prices have increased. Too high will push input costs of goods, create a burden on business costs, hit people’s pockets, and slow down the recovery. According to him, the issue that needs attention now is to restrain the increase in gasoline prices. This expert also suggested the National Assembly to study the reduction of excise tax on gasoline. Because according to him, gasoline is not a luxury good, but it is subject to both environmental protection tax and excise tax.

National Assembly member Nguyen Thi Suu (Thua Thien – Hue delegation) also agreed with the proposal to reduce the special consumption tax on gasoline to control the price of this item, but she noted that it is necessary to carefully calculate the reduction to ensure the source of fuel. revenue. On the side of enterprises, Mr. Do Van Bang hopes that the competent authorities will soon use tax tools to control the increase in petrol prices. According to Mr. Bang, there is still room for environmental protection tax reduction, along with the calculation of additional excise tax reduction to “cool down” this important item.

In the context of a negative stabilization fund, gasoline prices in the next operating period are forecast to continue to increase, some argue that in addition to using “valves” of taxes and fees, it is necessary to build a separate national reserve and raise petroleum reserve level to stabilize supply and actively regulate prices.