The Great Gas Price Plunge: What Happened Over the Last 3 Years?

The retail price of RON 95-III gasoline decreased by 1,192 VND/liter compared to the current base price to 19,635 VND/liter. The retail price of E5RON92 gasoline decreased by 1,089 VND/liter to 18,890 VND/liter (745 VND/liter lower than RON95-III).

Similarly, the price of 0.05S diesel oil was also adjusted down by 927 VND/liter, with the selling price at 17,165 VND/liter. The retail price of kerosene decreased by 934 VND to 17,790 VND/liter; the price of mazut 180CST 3.5S decreased by 688 VND/kg, to 14,467 VND/kg.

Lowest price since 2021

For RON95 gasoline, this is the lowest price since the trading session on June 11, 2021; meanwhile, for E5RON92 gasoline, this is the lowest price since the trading session on July 12, 2021.

In 2021, although the world in general and Vietnam, in particular, had to fight hard against the COVID-19 pandemic, with many production and travel activities being disrupted, gasoline prices did not decrease. Gasoline prices continuously increased from the beginning of the year due to the influence of various global factors and domestic policies.

In 2021, the government issued Decree No. 95/2021/ND-CP, which changed the gasoline and oil price adjustment period to the 1st, 11th, and 21st of every month to quickly reflect the fluctuations in world prices on the domestic market.

The government also used the Price Stabilization Fund to reduce the pressure of increasing domestic prices. Although world gasoline and oil prices increased by an average of 59% to 76%, domestic prices only increased by 40% to 52.59%.

The year 2022 was an unusual year for the gasoline and oil market, with prices fluctuating up and down throughout the year and peaking on June 21 at 32,870 VND/liter. There were also some trading sessions with significant gasoline price fluctuations of up to 2,000-4,000 VND/liter. Although various taxes and fees were reduced, including a 50% reduction in the environmental protection tax on gasoline and oil products, it was not enough to completely curb gasoline and oil prices in the context of the global market, where oil prices also continuously increased.

Gasoline prices continuously peaked in the middle of the year due to fluctuations in the world gasoline and oil market. The EU proposed a ban on Russian gasoline and oil products, and OPEC+ did not increase production as planned. At the same time, the demand for crude oil increased when the US announced a plan to buy an additional 60 million barrels of oil for its strategic petroleum reserve. Domestically, the production and business activities of the people and enterprises also recovered after the COVID-19 pandemic was controlled.

However, after continuously decreasing from the middle of June to the beginning of October, at the end of the year, the market experienced a temporary shortage of gasoline, and prices slightly increased due to the high domestic demand while supply could not keep up, as well as the decline in sales discounts, causing gasoline retailers to cut output.

In 2023, the gasoline and oil market in Vietnam still fluctuated with many price adjustments, but the fluctuations were not as strong as in 2022, with 19 increases, 14 decreases, and 3 stable prices.

In the second half of 2023, Brent oil prices in the world market touched the mark of 95 USD/barrel due to tight supply from OPEC+ and high demand from China as its economy recovered well. As the year drew to a close, oil prices cooled down due to concerns about a global economic recession and high-interest rates.

In general, the Vietnamese gasoline and oil market in 2023 fluctuated following the global trend. However, the Vietnamese government also used the Price Stabilization Fund and adjusted tax and fee policies to support enterprises in the industry, helping domestic oil prices to be less affected by world oil prices, reducing inflationary pressure and the burden on consumers.

Stable domestic gasoline and oil prices since the beginning of 2024, with no significant fluctuations

So far this year, domestic retail gasoline and oil prices have fluctuated after many trading sessions but not significantly. According to statistics from the Ministry of Industry and Trade, this is the fourth consecutive decrease, and so far this year, gasoline prices have increased 17 times and decreased 19 times; diesel oil also increased 16 times and decreased 18 times.

In the international market, gasoline and oil prices tend to decrease due to factors such as OPEC+ adjusting its forecast for lower oil demand in 2024 than previously expected and postponing its plan to increase oil production; China’s oil demand remains weak, and the military conflict between Russia and Ukraine continues…