|Global crude oil price hits US$60 again on July 14.|
Fuel firms have told SGGP that they will cut their rates by VND500-1,000 a liter by this weekend if the global crude oil price continues to slide or remain at its current price.
According to a wholesaler, firms currently make a profit of as much as VND200 a liter.
Discussing oil price control, many firms said that the Government should control the price based on an existing formula.
Some firms do not import oil when the price is high but increase imports when the price falls, they said, adding that the Government should also monitor the firms if they fill their quota to prevent this case.
In addition, firms has proposed the Government abolish the three day regulation which has caused loss for both fuel firms and consumers, as firms can only adjust their prices after the ministries of Finance and Industry and Trade make their announcements within three working days.
In related news, building material costs rose, as supply sharply dropped from June.
After six straight rises within the last two months, steel producers increased their prices by at least VND150,000 a ton to VND10.6-10.7 million a ton.
Retail prices at Vina Kyoeo, Pomina, and Vnsteel are around VND11 million, and even VND12 million at some dealers.
Steel producers said the price hike was due to materials’ high price, as steel ingots jumped to $460-480 a ton from $360 a ton in April.
According to an official from Vietnam Steel, the sharp decline of the dong against the US dollar has also boosted steel prices.
The Vietnam Steel Association said steel consumption reached a record high at 400,000 tons a month in April and May but fell to 330,000 tons in June.
Other building materials have also added five to ten percent to their values, as transport fees rose due to an increase in oil costs in the beginning of July.