Oil exports fall behind petrol imports

The Ministry of Industry and Trade has raised concerns regarding the import value of refined petrol products against the export revenue of crude oil, saying that it was a major challenge in curbing the trade deficit.

Deputy Minister of Industry and Trade Nguyen Thanh Bien said 2011 differed from past years when the export of crude oil was enough to offset the import of refined petroleum.

Ministry statistics report that the country had to import more than 5.14 million tonnes of refined petrol, valued at US$4.58 billion, an increase of 15.6 and 41 per cent in terms of volume and value during the first five months of this year. Only 3.44 million tonnes of crude oil, valued at $2.89 billion, were exported during this period.

The Dung Quat Oil Refinery meets around 30 per cent of the country’s total refined petroleum demand, necessitating the import of refined petroleum in order to satisfy an annual 7-10 per cent surge in domestic demand.

Industry insiders attribute the disparity to the high prices of refined petroleum compared to that of crude oil, adding that domestic petroleum demand was still in its infancy while crude oil output has decreased.

Statistics revealed that, during the first five months of this year, the global price of crude oil increased by 25 per cent while the price of refined petroleum products increased by 32-43 per cent in comparison with the same period last year.

Viet Nam’s crude oil output decreased from 18.8 million tonnes in 2005 to 15.01 million tonnes last year. — VNS

Tags: Vietnam oil exports, Vietnam petrol imports