May 4, 2012

Vietnam - Cooking gas price in Vietnam drops to 370,000 dong


Local gas trading firms have lowered the retail price of cooking gas to 370,000 dong per 12-kilogram cylinder after the global gas price for May delivery dropped by US$140 per ton.

Gas traders such as Saigon Petro and Pacific Petro announced the price reduction on Monday, selling the fuel at a common price of 370,000 dong per 12-kilogram container, falling by 35,000 dong from early last month.

Do Trung Thanh from Saigon Petro said that the local retail price was adjusted after the gas contract price in May declined by US$140 per ton to US$852.5 per ton.

The gas price has now started to cool down after hitting the record high of US$1,205 per ton in March, pushing the local retail price to 480,000 dong per 12-kilogram container and leaving a huge impact on sales revenue of many traders.

A gas trader said that the contract price has been on the decline during last month. Therefore, many firms have decided to sell cooking gas at reduced prices late last month to spur the demand and reduce the stockpile.

The gas stockpile has declined much, and thus local gas traders have lowered the retail price in line with the global drop. The local retail price reduction early last month was smaller than the global cut.

However, according to gas trading firms, there is a rumor that the Ministry of Finance will resume the gas import tax this month. If so, the local gas price will increase in accordance with the import tax rise.

The import tax on liquefied petroleum gas has now stayed at 0% after being lowered from 5% on March 3. Following this tax cut, the local gas price was reduced by 16,000 dong per 12-kilogram cylinder.

Saigon Times



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