Aug 27, 2012

Vietnam - Filling stations close over anticipated price hikes

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While local fuel wholesalers tend to complain of losses while asking to increase retail prices whenever global prices soar, filling stations have their own tactic: shutting their doors immediately after the wholesalers call on authorities for a price hike.

A number of filling stations in Ho Chi Minh City and the neighboring provinces of Dong Nai, Binh Duong and Binh Thuan pulled this trick again Sunday, displeasing customers with banners that read “out of electricity,” or “empty stock.”

The moves were made just days after two wholesalers, Petimex and Petec, called on the Ministry of Finance to increase fuel retail prices by VND1,200 a liter.

This scenario has become increasingly common in Vietnam this year: wholesalers propose to hike prices, filling stations temporarily shut down, and prices eventually rise.

On August 26 many dealers of the Thalexim wholesaler in HCMC’s Cu Chi District refused to sell, employing the excuse that they were “running out of stock,” local customers complained.

Meanwhile in Bien Hoa City, a long line of customers waiting to refill their vehicles at the Doan 22 filling station on August 26 were disappointed by the employees telling them that the stock was empty.

Locals said the station made a similar move two weeks ago, before returning to normal operations immediately after the gasoline price was hiked by VND900 a liter.

In Binh Duong, three filling stations located within just 1 – 2km of Provincial Route No.747 in Tan Uyen District all hung up “out of power” banners to stop sales.

Duong Manh Dung, deputy head of the Market Management Agency in Dong Nai, told Tuoi Tre on Sunday that they have sent forces to permanently monitor the filling stations.

“If the stations show signs of speculating fuel, they will be strictly penalized,” he said.

If a fuel price increase is actually announced in the days to come, it will be the third straight hike in less than a month.

Fuel prices have seen five reduction and five increases so far this year, losing a total of VND3,200 a liter, but gaining a huge VND5,400 a liter.

TUOI TRE


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