Gas climbs to highest price this year

May 04, 2011 | 13:17

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The retail price of gas surged by VND30,000 ($1.44) per 12kg canister of household gas from May 1 – the highest price increase this year, according to the Vietnam Gas Association.

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A 12kg canister from Sai Gon Petro, Petrolimex, Gas Sai Gon, MT Gas, Hong Ha Gas and Thai Duong Gas were being sold from VND378,000 to VND390,000 (18.09-$18.66).

Deputy head of business department of Sai Gon Petro Do Trung Thanh explained the price hike was mainly attributable to increased global gas prices.

Thanh said the May delivery gas price on the world market increased to $970 per tonne, up by $87.5 per tonne compared to the previous month, forcing domestic firms to dramatically adjust prices.

Industry insiders said in addition to rising world gas prices, costs of other inputs including transportation and oil prices also pushed up domestic retail prices. Transportation costs doubled from $80 to $160 per tonne, while world oil prices continued rising as global political instability and natural disasters had led to unstable supply of fuel, including gas.

This increase spells the fifth occasion this year that domestic retail gas prices have increased. Gas prices only reduced once in early February by VND2,000 - VND25,000 (1.05 - $1.20) per 12kg canister, but this 10-day downward adjustment ended after the State Bank of Vietnam devalued the dong against the US dollar.

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