According to information from the Ministry of Industry, Trade and Finance, the world petroleum market in recent days has continued to fluctuate due to the impact of the conflict in the Middle East. The continued blockade of the Strait of Hormuz has put pressure on the global energy supply chain. In addition, the US Federal Reserve (Fed) signaled that it may continue to raise interest rates to control inflation, thereby increasing concerns about weakening energy demand.
These factors caused the price of finished petroleum products on the world market to decrease compared to the previous operating period. The average price of RON95 gasoline decreased by about 3.4%, to 130.8 USD/barrel, while diesel decreased by about 5%, to 146 USD/barrel.
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| RON95-III gasoline decreased by 280 VND/liter, down to 24,070 VND/liter (Illustration) |
Based on world price developments, the Ministry of Industry, Trade and Finance decided to adjust and reduce retail prices of domestic petroleum products.
Specifically, RON95-III gasoline decreased by 280 VND/liter, down to 24,070 VND/liter. E5 RON92 gasoline decreased to 23,130 VND/liter.
Oil products were also adjusted downward. Diesel oil decreased by 270 VND/liter, while fuel oil decreased by 590 VND/kg compared to the previous operating period.
During this operating period, the management agency continues to not make provision for the Petroleum Price Stabilization Fund for all products.
From the end of February until now, domestic gasoline prices have gone through 21 operating periods. In particular, RON95-III gasoline price increased 11 times, decreased 8 times and remained unchanged 2 times. Diesel oil recorded 9 increases, 10 decreases and 2 price stability.
Regarding the operating mechanism, since the end of April, the Ministry of Industry and Trade has removed kerosene from the list of petroleum retail price announcements according to the provisions of Circular 21. The reason is that this product is no longer popular on the market, consumption only accounts for about 0.1% of the total petroleum demand of the economy.
Currently, taxes including environmental protection tax, special consumption tax and value added tax (VAT) on gasoline and jet fuel continue to be applied at 0% until the end of June according to the National Assembly's resolution. Petroleum import tax is also maintained at 0% until June 30 to support businesses proactively finding alternative sources of supply in the context of supply chains from Korea and ASEAN affected by military conflicts.
Notably, from June 1, E10 RON95-III gasoline will be widely sold on the market after 10 months of piloting, replacing RON95-III mineral gasoline. Meanwhile, E5 RON92 gasoline continues to be circulated until the end of 2030.
Two major focal enterprises, Petrolimex and PVOIL, said they will expand sales of E10 gasoline throughout the system from May 15, about half a month earlier than the prescribed schedule.
Source: Petrotimes