According to preliminary statistics from the General Department of Customs, in December 2023, Vietnam imported 222,517 tons of liquefied petroleum gas (LPG), equivalent to over $151.2 million, an increase of 25.3% in volume and 25% in value compared to the previous month.
In total for the 12 months of 2023, Vietnam spent over $1.55 billion to import over 2.5 million tons of LPG from various markets, an increase of 27.9% in volume and 1.1% in value compared to the same period in 2022. The average import price for the first 12 months of this year was $618.6 per ton, a decrease of nearly 21% compared to the same period last year.
As for the origin of imported LPG, Vietnam mainly imports from Saudi Arabia, Qatar, China, etc. In particular, a market in Southeast Asia unexpectedly exported a large amount of LPG to Vietnam in December, showing the highest growth rate among all markets.
Specifically, in December, Vietnamese businesses imported 14,062 tons of LPG from Malaysia, reaching a turnover of $9.8 million, a remarkable increase of 182% in volume and 200% in value compared to the same period last year. This is the highest increase in a month since the beginning of the year.
Over the 12-month period, Vietnam spent over $111.3 million to import 175,353 tons of LPG from this country, an increase of 130% in volume and 82% in value, accounting for 6.9% of the volume and 7.2% of the import turnover. The average import price from this country is currently only about $643 per ton, a decrease of nearly 21% compared to the same period in 2022.
Currently, LPG in Vietnam is mainly refilled into containers to serve household needs such as heating, cooking, industrial use, vehicle use, refrigeration, and other applications from LPG products, which are still low such as use in oil refining technology.
Currently, about 60% of domestic gas supply is actively met. Therefore, the retail gas price in the country is dominated and influenced by the world gas price.
The domestic gas price has been adjusted up twice since the beginning of 2024. Specifically, the Petrolimex gas retail price in Hanoi in February 2024 (including VAT) is 458,100 VND/12 kg household cylinder; 1,832,200 VND/48kg industrial cylinder, an increase of 5,340 VND/12 kg cylinder and 21,160 VND/48 kg cylinder (including VAT) compared to the January gas price.
Gas businesses in the South say that gas companies will increase prices for 12 kg cylinders with an increase of over 60,000 VND/cylinder. This is equivalent to an increase of about 5,000 VND/kg.
At the Pacific Petro Gas Trading Joint Stock Company (Gas Pacific Petro), from February 1, the gas price at this company will increase an additional 417 VND/kg (including VAT).
Specifically, 6kg cylinders will increase by an additional 2,500 VND/cylinder, 12kg cylinders will increase by an additional 5,000 VND/cylinder, 45kg cylinders will increase by an additional 19,000 VND/cylinder, and 50kg cylinders will increase by an additional 21,000 VND/cylinder. The price of a 6kg gas cylinder to consumers will not exceed 269,000 VND/cylinder, a 12kg cylinder will be 479,000 VND/cylinder, and a 45kg cylinder will be 1,796,500 VND/cylinder…
Previously, the domestic retail gas price in January 2024 increased by 6,000 VND/cylinder for 12kg cylinders, 22,500 VND/cylinder for 45kg cylinders, and 25,000 VND/cylinder for 50kg cylinders.
The International Energy Agency (IEA) stated that the world natural gas market is expected to experience strong growth in 2024, mainly driven by industry and energy in rapidly developing economies in Asia and gas-rich countries in Africa and the Middle East.
However, increasing geopolitical tensions and increased restrictions on transportation through the Red Sea may cause significant fluctuations in world gas prices in short periods when supply is disrupted.
