Domestic gas prices entering May recorded a series of increases at many businesses, while some large brands still maintained prices, creating differentiation in the market.
Retail gas price
The domestic gas market recorded a noteworthy development when entering May, with many businesses simultaneously adjusting retail prices to increase.
According to information from key units, from the morning of May 1, gas prices have been adjusted to increase by 2,250 VND/kg (including VAT), equivalent to an increase of 27,000 VND for a 12kg cylinder.
In the Southern region, Long Yin Long An Energy Joint Stock Company said that brands such as City Petro, Vina Pacific Petro and Vimexco all apply this increase. Accordingly, 6kg gas cylinders increased by 13,500 VND, 12kg cylinders increased by 27,000 VND, 45kg cylinders increased by about 101,000 VND, while 50kg cylinders increased by 112,500 VND.
After adjustment, the new retail price is listed at 352,000 VND/6kg cylinder; 644,500 VND/12kg cylinder; 2,415,500 VND/45kg cylinder and 2,682,500 VND/50kg cylinder.
Not only domestic brands, many international gas companies such as ELF, VT, Total... also adjusted up by about 27,000 VND/12kg cylinder, showing a widespread price increase trend.
According to businesses, the main reason comes from the increase in CP prices (world liquefied gas contract prices) and premium costs. Premiums are additional costs in addition to import prices, including transportation, insurance, logistics and freight expenses to Vietnam. Currently, the premium level ranges from about 75-80 USD/ton, significantly higher than before.
In addition, fluctuating world oil prices and increasing energy demand in the region also contribute to creating pressure on domestic gas prices.
Brand gas prices
Although the general price level has increased, the market still records differentiation between businesses.
Some major brands such as Saigon Petro and Petrolimex continue to maintain the price level applied from the end of April. In the Southern region, Petrolimex Can Tho Gas said that the selling price from May 1st has not changed compared to the most recent adjustment period.
This development shows that businesses are having flexible price strategies to maintain market share and stabilize consumer demand in the context of increasing input costs.
Currently, domestic gas prices still largely depend on imports, because domestic output does not meet demand. Therefore, price fluctuations are directly affected by world prices, USD/VND exchange rates, transportation costs, as well as supply-demand factors and tax policies.
In the context of the global energy market still fluctuating, the domestic gas price level is forecast to continue to be under pressure in the coming time, especially when input costs have not shown signs of cooling down.
