Many fuel wholesalers on Friday submitted their proposals to hike petroleum prices to the Ministry of Finance, saying they have been incurring losses due to soaring global prices.

People crowd up at a filling station in HCMC on June 7, when fuel prices were slashed by VND650-800 a liter Photo: Tuoi Tre

A92 gasoline retail price was hiked by VND900 a liter earlier this month, but it is now VND1,000 a liter lower than the cost price, wholesalers said.

Dong Thap Petroleum Trading Import Export Co (Petimex) said on Friday that it had sent the new price registration to the finance ministry, with gasoline price proposed to increase by VND1,400 a liter, and fuel, VND800 a liter.

The increase amounts are similar to those registered by SaigonPetro.

Meanwhile, the country’s largest fuel wholesaler Petrolimex refused to elaborate how much it wants to hike fuel prices, but said “everything has been calculated.”

The fuel businesses said they are under pressure to propose the price hikes.

Global fuel prices rose to $128 a barrel from $110 a barrel in July, while the domestic supply was temporarily cut as the Dung Quat Oil Refinery is undergoing a shutdown for repairing its residue fluid catalytic cracking system.

The country’s sole refinery accounts for some 30 percent of fuel supply for local wholesalers. Sourcing fuel domestically poses huge advantage for the wholesalers as they do not have to pay in foreign currency, while transporting time is also shorter than importing from Singapore, the country’s main source of fuel.

The price increase proposal is pending approval from the Ministry of Finance, but it is likely that consumers will see the third price hike imposed within less than a month.

It is stipulated that the minimum period between two consecutive price hikes or price cuts is 10 days, and with the latest increase falling on August 1, it is now eligible for a new price hike to be released.

This year has so far seen four fuel price increases and five reductions. Gasoline retail price rose by a total of VND4,300 a liter, and dropped by VND3,400 a liter.

Source: Tuoi Tre News