Will fuel prices decline in Vietnam?

Vietnamese consumers and fuel dealers are anticipating a retail price cut and a commission hike since global oil prices are declining.

WTI crude oil for delivery in October yesterday tumbled US$2.37 a barrel to $77.48, while London’s Brent North Sea crude dropped to $103.19.

In Singapore, Vietnam’s largest fuel supplier, A92 gasoline quoted at $118 a barrel on September 23, and analysts said the current downward trend could take it down to $115 this week.

In Vietnam, there is expectation of a fall in retail prices.

Fuel retailers said the current commission of VND150 per liter of gasoline was not enough for them to cover expenses.

They wanted the commission to be increased back to VND800, the rate obtaining in late July and early August when A92 was between $118 and $120.

Last month fuel retail prices edged down by VND300 – 500 (($0.015-0.025) per liter after soaring by VND2,900 in February.

The pump prices of A92 and A95 are now VND20,800 and VND21,300, while diesel and kerosene cost VND20,800 and VND20,500. – Tuoitre

Tags: Vietnam fuel prices