Vietnam’s petrol reserves remain sufficient for domestic use despite the recent shortage at several gas stations in the South, according to the Ministry of Industry and Trade (MoIT).

MoIT referred to reports from major gasoline distributors Petrolimex, Pvoil, Military Petroleum or Saigon Petro, stating that their oil inventories are capable of meeting the demand of all gas stations in their respective networks, and they have also actively resorted to importing sources in case of a sudden increase in demand.

Commenting on the temporary closure of nearly 100 gas stations in Ho Chi Minh City and other southern provinces/cities invoking fuel shortages, Director of MoIT's Internal Market Department Tran Duy Dong, at a press conference yesterday [October 12] said the complicated global fuel market, unstable supply sources and volatile market prices are causing negative impacts on the operation of businesses.

This is not to mention the high oil inventories bought at skyrocketing prices in previous months out of fear of potential disruption of petrol supplies from the Nghi Son Oil Refinery, which have not been cleared. Meanwhile, petrol prices in the world’s market went down sharply in the third quarter.

“This resulted in those with large petrol stockpiles facing major losses and having to scale down operation,” Dong said.

Meanwhile, he continued, the rising VND/USD exchange rates are making it hard for distributors to import petrol products at a high volume in the past months.

“During this context, the trade ministry is working with two oil refinery plants to speed up petrol delivery to distributors struggling to find supply sources and also to recalculate the retail prices in the domestic market,” Dong said.

Deputy Minister of Industry and Trade Do Thang Hai added that most of the service stations temporarily suspended are concentrated in four or five southern provinces and cities and that their number is insignificant compared to the total number of 17,000 nationwide, and that they 

“The Government, however, is committed to addressing the issue as soon as possible,” Thang Hai said.

Recently, gas stations in Ho Chi Minh City and other southern provinces/cities have been overwhelmed due to fears of gasoline shortages.

A MoIT estimate revealed that total gasoline consumption demand in Vietnam averages 20.5-21 million cubic meters per year.  Domestic production could meet up to 70%, while oil imports account for the remaining 30%.

Vietnam currently has 36 major petrol importers, 500 distributors, and 17,000 gas stations.  

On October 11, a joint committee of representatives from the Ministry of Finance and MoIT raised the retail prices of E5-Ron92 and Ron95 biofuel by VND560 to VND21,290 and VND22,000 per liter, respectively.

The two ministries also increased the transport costs from oil refinery plants to distributors for Ron92 by VND40 to VND290 per liter; Ron95 by VND70 to VND280; and diesel by VND240.

Source: Hanoitimes