Domestic retail gas prices start to increase from August 1

Domestic retail gas prices will start to increase from tomorrow, August 1, following the development of world gas prices.

Gas filling line at the factory of Thang Long Liquefied Petroleum Gas Joint Venture Company. Photo: Ha Thai/VNA

Specifically, the retail price of Petrolimex gas cylinders (including VAT) in August 2024 in the Hanoi market is 448,200 VND/12 kg household cylinder; 1,792,600 VND/48 kg industrial cylinder, respectively increasing by 2,700 VND/12 kg cylinder and 11,100 VND/48 kg cylinder (including VAT).

Similarly, PETROVIETNAM GAS announced a price increase of VND3,000/12 kg cylinder; VND11,250/45 kg cylinder; maximum retail price of about VND454,000/12 kg cylinder and about VND1.7 million/45 kg cylinder. SP Gas increased by VND2,500/12 kg cylinder; maximum retail price not exceeding VND429,500/12 kg cylinder.

Meanwhile, from August 1, the gas prices of City Petro, Vimexco, Vina Pacific Petro at Pacific Petroleum Trading Joint Stock Company will increase by VND250/kg. Phuc Sang Minh Gas Company (JPS) also announced that the price of 12kg gas cylinders will increase by VND2,637 (VND429,637/cylinder) and 45kg gas cylinders will increase by VND9,888 (VND1,611,000/cylinder) compared to July.

According to Mr. Nghiem Xuan Cuong, Head of the Department of Civil and Commercial Gas Business - Petrolimex Gas Corporation, the domestic retail gas price in August will increase from tomorrow because the average world gas price contract in August is at 580 USD/ton, an increase of 7.5 USD/ton compared to July, so Petrolimex Gas Corporation will make adjustments according to the corresponding increase.

Thus, since the beginning of the year, domestic retail gas prices have increased 4 times, decreased 3 times and remained unchanged once.

In the world market, gas prices on July 31 increased by 0.09% to 2.13 USD/mmBTU for natural gas contracts for delivery in September 2024 at 7:40 a.m. (Vietnam time).

Wholesale gas prices in the Netherlands and Britain traded in opposite directions on Tuesday as steady supplies helped offset rising demand due to higher temperatures and lower wind speeds, while the market continued to monitor tensions in the Middle East, Reuters reported.

Warmer weather could boost demand for more gas-fired power generation, which could impact global LNG prices, consultancy Auxilione said. The weather in Europe is forecast to remain warm in the coming days, boosting demand for gas for power generation, as well as forecast low wind power output for the rest of the week.

Meanwhile, French LNG producer Monitor remains completely shut until August 12, and outages continue at one of two processing lines at Australia's Ichthys LNG plant in Darwin.

However, analysts at Engie's EnergyScan said that Europe's LNG exports on July 30 fell to their lowest level since November 2021, but Europe's gas storage remained high at 84.49%. Therefore, gas prices will not fluctuate much. Sharing the same view, LSEG analyst Ulrich Weber said that world gas price fluctuations are not strong because gas prices are largely balanced by strong solar power generation.

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