The Race to the Pump: Will Gas Prices Ever Stabilize?

Gasoline prices have seen a decrease, with E5RON92 experiencing a drop of 92 VND per liter and RON95-III falling by 208 VND per liter. Similarly, various types of oil have also witnessed a reduction in prices, ranging from 84 VND to 299 VND per liter when compared to the current base rates. This marks the second consecutive time that gasoline and oil prices have been lowered.

0
81

On August 29th, the Ministries of Industry and Trade and Finance announced adjustments to the selling prices of gasoline and oil products.

In this price adjustment, the Ministries continued to not use the Price Stabilization Fund for E5RON92 gasoline, RON95 gasoline, 0.05S diesel oil, kerosene, and mazut.

As a result, the selling prices of popular gasoline and oil products in the market are as follows:

E5RON92 gasoline: no higher than 20.332 VND/liter (down 92 VND/liter compared to the current base price), 777 VND/liter lower than RON95-III gasoline.

RON95-III gasoline: no higher than 21.109 VND/liter (down 208 VND/liter compared to the current base price).

0.05S diesel oil: no higher than 18.477 VND/liter (down 299 VND/liter compared to the current base price).

Kerosene: no higher than 19.065 VND/liter (down 84 VND/liter compared to the current base price).

180CST 3.5S mazut: no higher than 15.562 VND/kg (down 194 VND/kg compared to the current base price).

Fluctuation in domestic gasoline and oil prices from 1/4/2024 – 8/29/2024

Regarding the reason for the price decrease, the Ministries cited factors such as new developments in the conflict in the Middle East, a decrease in US crude oil reserves, weak oil demand from China, and the ongoing military conflict between Russia and Ukraine. These factors caused fluctuations in world gasoline and oil prices, with a downward trend predominant in the past few days.

Specifically, the world price average of gasoline and oil by-products between the price adjustment period from August 22, 2024, to August 29, 2024, was as follows: 83,936 USD/barrel for RON92 gasoline used to blend E5RON92 (down 0.228 USD/barrel, equivalent to a 0.27% decrease); 87,660 USD/barrel for RON95 gasoline (down 0.796 USD/barrel, equivalent to a 0.90% decrease); 90,806 USD/barrel for kerosene (down 0.172 USD/barrel, equivalent to a 0.19% decrease); 89,066 USD/barrel for 0.05S diesel oil (down 1.424 USD/barrel, equivalent to a 1.57% decrease); and 448,284 USD/ton for 180CST 3,5S mazut (down 5.434 USD/ton, equivalent to a 1.20% decrease)

Fluctuation in world gasoline and oil product prices from 8/22/2024 – 8/28/2024

In this price adjustment period, given the fluctuations in world gasoline and oil prices, the VND/USD exchange rate, and current regulations, the Ministries decided on a price adjustment plan to ensure that domestic gasoline and oil price changes are consistent with world price changes. The Ministries also aim to maintain a reasonable price difference between biofuel E5RON92 and mineral RON95 to encourage the use of biofuels in line with the government’s policy, and to balance the interests of all market participants.

You may also like

Declining USD Prices: Banks and Free Market Suffer Declines

Approaching Tet holidays, the USD price in banks and the free market dropped significantly, despite the international USD index maintaining a high level.

New currency exchange service: Rare small denominations

The demand for exchanging small denominations of money increases during the Lunar New Year, but the availability of small bills is limited. The familiar “money exchange kiosks” are also gradually disappearing from this service.

Mr. Ngo Dang Khoa (HSBC): Exchange rate under pressure in Q1, expected to stabilize around 24,400 dong/USD by end of 2024

Prior to the rising trend of the USD, Mr. Ngo Dang Khoa – Director of Foreign Exchange, Capital Markets and Securities Services, HSBC Vietnam, has shared some insights and forecasts regarding the upward momentum of the USD and exchange rates.