Retail of cooking gas in domestic market is expected to reduce further in June, but not much despite contract price (CP) significantly reduced from May contract price.

Mr Le Anh Dung- Deputy General Director of Dai Viet Energy Joint Stock Company (Vinagas) told that to the norning, May 28th, CP has fell by USD157 since early May to USD659.5 a tonne.

If this price still keeps to last day of May, retail price of cooking gas in domestic market may decline another VND40,000 a cylinder of 12kg.

However, PV Gas recently announced to raise premium price in June several tens of USD higher than the tender price, so major gas distributors shall reconsider the retail price, as well as the balance between CP and premium.

Mr. Le Quang Tuan, Business Manager from Pacific Petroleum Trading Joint Stock Company (Pacific Petro) said: “As PV Gas anounnced that Dung Quat oil refinery is stopping for maintenance within one month, causing domestic produced supply shortage and forcing them replace with import volumes. That the reason why PV Gas to increase the premium price about several tens of USD per tonne”.

Mr Dung added, as announcement his company received few days ago, the premium of CP will increase around USD21 a tone while non-contract price up by USD35 a tonne. So gas companies estimated retail price only reduce further about VND30,000 a cylinder in the next month.

Under the contract of sale between gas distributors and PV gas, cost = CP price (as settlement price) + premium (fixed).

In the recent two months, retail cooking gas in domestic market has decreased continuously, total nearly VND100,000 a cylinder of 12kg, and now is prevailing at VND370,000 a 12kg cylinder.

Xangdau.net