Gas prices soar sharply in Vietnam

Price of gas in Vietnam climbed for the sixth time since February to reach a record high this year due to global prices escalating with rising gas demand in European countries prior to winter season.

Since December 1, 2013, the price of a 12 kilogram gas cylinder rises by an average of VND78,000. (Photo: SGGP)

Since December 1, the price of a 12 kilogram gas cylinder rose by an average of VND78,000, sending retail price to around VND475,000-485,000, depending on brand.

According to the Vietnam Gas Association, local retail gas price hiked by VND6,500 per kilo as gas futures for December delivery closed at US$1,162.5 per ton by Saudi Aramco, the world’s largest liquefied petroleum gas supplier, up $267.5 compared to November delivery. In addition, gas demand soared as winter season approaches; hence gas companies have had to adjust prices to correspond.

Moreover, some retailers may possibly be holding stock prior to Lunar New Year for higher profits. Change in US dollar exchange rate, transport fee, and insurance have also caused gas price to go up.

Nguyen Sy Thang, Chairman of Vietnam Gas Association, said that they have sent an official document to the Ministry of Finance asking for tariff cut to zero percent from 5 percent to ease burden on consumers. If the ministry approves import tariff cut, the price of a 12 kilo gas cylinder will drop by VND17,000.

By Lac Phong – Translated by Thuy Doan

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