Market and product
Fuel firms make profit despite price cut
Local fuel trading firms earn at least VND600 from every liter of gasoline they sell despite a price cut of VND330 per liter in the middle of last week.
According to the Vietnam Petroleum Association, the base price of RON 92 gasoline has dropped significantly since July 14. The price stood at VND25,330 per liter on August 5, down nearly VND1,000 a liter compared to July 14.
The average 30-day price in Singapore fell to US$117.92 per barrel on August 5 from US$123.03 on July 14.
The current RON 92 gasoline price of VND25,310 per liter is lower than the base price by VND20 per liter. The base price is calculated by the world’s average 30-day price plus tax and cost.
However, thanks to a deduction of VND600 per liter from the national fuel price stabilization fund, traders still pocket VND580 per liter, not to mention a fixed profit of VND300 a liter factored into the base price. If this sum is included, they can earn up to VND880 from each liter of gasoline sold.
According to a notice of the ministries of Finance and Industry and Trade, before the fuel price reduction on July 28, traders obtained VND395 per liter of petrol. The world’s 30-day average price used to calculate the local base price continued to drop to US$121.4 from US$123.03 a barrel from July 14 to 24.
Fuel retail prices are revised every 10 days following the world’s 30-day average price. Therefore, domestic prices do not follow global market movements immediately.
