On the afternoon of April 30, leading gas distributors such as Saigon Petro and Pacific Petro announced a price reduction. Accordingly, from May 1, the maximum retail price for consumers in Ho Chi Minh City will be set at VND 370,000 per 12kg cylinder, down VND 35,000 per 12kg cylinder (equivalent to VND 2,917/kg, inclusive of VAT) compared to early April. Similarly, 45kg cylinders will be reduced by VND 131,000, while 50kg cylinders will drop by VND 146,000.
According to Mr. Do Trung Thanh, Gas Sales Department of Saigon Petro (brand SP Gas), domestic prices were adjusted following the announcement from Saudi Aramco that the CP (Contract Price) for May fell by USD 140 per ton compared to April, bringing the price of this fuel down to USD 852.5 per ton.
After peaking in March at USD 1,205 per ton, which pushed domestic retail gas prices to VND 480,000 per 12kg cylinder and significantly impacted sales, gas prices have now started to cool down.
A representative of a gas company explained that throughout April, particularly in the last few days, the CP price showed a clear downward trend. As a result, many companies adopted a “price guarantee” policy, selling at anticipated lower prices to distributors in the final days of the month to stimulate demand and reduce inventory.
At this point, inventory levels have fallen significantly, so companies have lowered domestic retail prices in line with international declines, unlike early April when domestic cuts lagged behind global reductions.
However, leading gas distributors also noted rumors that the Ministry of Finance may reinstate the gas import tax in early May. If this decision is implemented, gas prices will have to increase accordingly, reflecting the higher import tax.
Currently, the import tax on liquefied petroleum gas (LPG) is 0%, after the Ministry of Finance reduced it from 5% to 0% on March 3. Following this tax cut, gas companies lowered retail prices by VND 16,000 per 12kg cylinder.
(Thoi Bao Kinh Te Sai Gon Online 30/4)
