Fuel costs escalate further in the latest price hike
Fuel Prices Adjusted in Hanoi: A Balance of Global and Domestic Factors
In a recent development, the prices of various fuels in Hanoi, Vietnam, have undergone adjustments due to a combination of global oil price trends and domestic market dynamics.
The maximum retail price of E5 RON92 petrol has increased by VND207 to VND19,608 per litre, while RON95-III petrol now costs VND234 more, reaching VND20,074 per litre. This upward trend in petrol prices is a reflection of the rising international crude oil prices, which are impacting domestic retail prices.
Conversely, the price of diesel 0.05S has decreased by VND268, now selling at VND18,800 per litre. The price of kerosene has also dropped, by VND54, currently standing at VND18,660 per litre.
Interestingly, in this adjustment, no fuel categories received funding from the petrol and oil price stabilisation fund. This decision signifies a policy stance avoiding the use of government subsidy buffers, allowing prices to fully reflect market conditions.
The frequent fuel price adjustments this year, totalling 33, demonstrate a responsive pricing mechanism to ongoing market fluctuations. For instance, RON95 petrol has been adjusted upward 18 times and downward 15 times, reflecting the volatility in underlying cost factors.
These adjustments aim to balance rising international costs with domestic demand and supply conditions. For example, the price of mazut 180CST 3.5S has increased by VND114 to VND15,647 per kilogramme, indicating variable supply factors within Vietnam.
In Ha Noi, a customer recently purchased petrol, marking the ongoing impact of these price changes on consumers. The price adjustments serve as a reminder of the dynamic nature of the global oil market and its implications for local fuel prices.
[1] Ministry of Industry and Trade, Vietnam [2] Ministry of Finance, Vietnam [3] Petroleum Price Stabilisation Fund, Vietnam [4] General Department of Vietnam Customs
- To mitigate the influence of rising international crude oil prices, the Ministry of Finance in Vietnam could explore the use of AI in financial forecasting to optimize the allocation of funds from the petroleum price stabilization fund.
- As the energy industry shifts towards increased AI integration for trade and financial decision-making, it is crucial for the Ministry of Industry and Trade, Vietnam to collaborate with global AI leaders to stay competitive and adaptable in the evolving market.
- The government could also encourage local AI startups to focus on innovative solutions for the automation of trade processes and finance within the energy sector, aiming to optimize resource allocation and reduce fuel expenditures.
