A gas agent on Nguyễn Đức Cảnh Street, Hanoi, reported that the retail price of Vinashin gas on December 5 was 270,000 VND per 12-kg cylinder, while just over a week ago it was sold for 240,000 VND. Shell Gas prices also climbed to 290,000 VND per cylinder, compared with 270,000 VND about 10 days earlier.
Mr. Trần Minh Loan, Chairman of the Board of Directors of Anpha Petroleum (the importer and distributor of Gia Định Gas) and Vice Chairman of the Vietnam Gas Association, stated: “The rise in gas prices is due to a combination of factors such as the recovery of the global economy, increased industrial demand for gas, and seasonal cold weather in many regions, which has driven up demand for heating and hot water, pushing global gas prices higher.”
In Vietnam, domestic gas only meets about 40% of total demand, so the market still heavily depends on global prices. Importing companies are further impacted by the rising USD against the Vietnamese dong, coupled with speculation, which has caused domestic gas prices to continuously rise in recent times.
Mr. Thái Văn Chức, Chairman of the Board of Directors of Vietnam Petroleum Equipment Joint Stock Company (producer and distributor of Vinape Gas), added: “Another reason why many agents intentionally push gas prices higher is that some major brands are already selling at high prices. For example, Shell Gas is being sold at 290,000 VND per cylinder and Total at 285,000 VND per cylinder, creating a ‘pulling effect’ that drives the overall market price upward.”
Mr. Trần Việt Tuấn, General Director of Tân An Bình Company (specialized in importing and distributing Petrovietnam Gas) and Vice Chairman of the Gas Association, estimated that the average import price of gas is currently less than 18,600 VND per kg, equivalent to about 223,000 VND per 12-kg cylinder. After processing, importers and distributors sell to retailers at about 19,500 VND per kg, or roughly 235,000 VND per cylinder. Retail shops can then resell to consumers for between 270,000 – 300,000 VND per cylinder, depending on the brand.
According to a director of a gas distribution company with more than 10 years of experience, retail agents are currently left unchecked. Many shops act as agents for multiple brands, so the selling price is determined entirely by the shop owners. As a result, some shops may add a margin of 50,000 – 70,000 VND per cylinder above the wholesale price.
(Thanh Nien 6/12)
