Ministry of Industry and Trade and Ministry of Finance Announce Fuel Price Adjustments
On April 17, 2024, the Ministry of Industry and Trade (MOIT) and the Ministry of Finance (MOF) announced adjustments to fuel prices.
During this adjustment, the ministries decided not to allocate or use funds from the Fuel Price Stabilization Fund (BOG) for E5RON92 gasoline, RON95 gasoline, diesel, kerosene, or mazut.
As a result, E5RON92 gasoline will be capped at 24,226 VND/liter (an increase of 378 VND/liter compared to the current base price), 1,011 VND/liter lower than RON95-III gasoline.
RON95-III gasoline will be capped at 25,237 VND/liter (an increase of 416 VND/liter compared to the current base price).
Diesel 0.05S will be capped at 21,446 VND/liter (a decrease of 164 VND/liter compared to the current base price).
Kerosene will be capped at 21,416 VND/liter (a decrease of 178 VND/liter compared to the current base price).
Mazut 180CST 3.5S will be capped at 17,206 VND/kg (an increase of 198 VND/kg compared to the current base price).
The ministries attributed the price adjustments to the following factors influencing the global oil market during the adjustment period (April 11-16, 2024): escalating tensions in the Middle East, the ongoing military conflict between Russia and Ukraine, and an increase in US crude oil stockpiles. These factors have caused fluctuations in global oil prices, varying depending on the specific product.
Specifically, the average global price of refined petroleum products between the April 11, 2024, price adjustment and the April 17, 2024, price adjustment was: 103.780 USD/barrel for RON92 gasoline used for E5RON92 gasoline blending (an increase of 1.637 USD/barrel, or 1.60%); 108,190 USD/barrel for RON95 gasoline (an increase of 1.670 USD/barrel or 1.57%); 105.265 USD/barrel for kerosene (a decrease of 1.568 USD/barrel or 1.47%); 105,980 USD/barrel for 0.05S diesel (a decrease of 1.488 USD/barrel or 1.38%); and 508,198 USD/ton for 180CST 3.5S mazut (an increase of 4.610 USD/ton or 0.92%).
In light of global oil price trends, the fluctuating VND/USD exchange rate, and current regulations, the MOIT and MOF implemented this price adjustment strategy to maintain consistency between domestic and global fuel price fluctuations. They also aimed to maintain a reasonable price difference between E5RON92 biofuel and RON95 mineral gasoline to promote the use of biofuels in line with government policies and balance the interests of market participants.
As per current regulations, Thursday, April 18, 2024, the 10th day of the third lunar month, is a public holiday (Hung Kings’ Day). Therefore, the next fuel price adjustment after the April 11 adjustment will be carried out on Wednesday, April 17, 2024.
