Traders in HCM City said that they expected gas prices to rise by even more than 15,000 dong a 12-kilogram cylinder in November following world prices’ leap to a ten-year record.
The gas price has increased by more than US$78 a tonne, or 1,250 dong a kilogram, compared with the price in early October. That means a tonne of gas imported into Vietnam costs more than US$600, including 10% value-added tax and 5% import tax.
Saigon Petro, Gia Dinh Gas and VT Gas said they would need to adjust their prices to reflect the rise in the world market price.
Nguyen Tuan Quynh, vice director of Petro, said a 12-kologram cylinder of gas would cost 150,000–155,000 dong, up some 15,000–20,000 dong.
State owned PetroVietnam Gas will also raise its prices, director Nguyen Si Thang said.
Gas prices have increased for four months. Local gas companies want the government to scrap the gas import tax to cushion the effect of world prices on local consumes’ spending. The local price depends on the world market price because Dinh Co plant, the only national gas producer, can meet merely half of the gas demand.
In addition, according to the finance ministry’s regulation, the plants gas prices can only be up to 5% lower than the import price.
Local gas companies find it difficult to forecast process. They said world prices usually fell in the hot season so the past six months had been an exception. With the cloudy season approaching, gas prices are expected to increase.
The Planning and Investment ministry reported that some 800,000 tonnes of gas was consumed this year, a 20% increase compared with the same period last year.