Domestic retail gas prices continue to increase from tomorrow, September 1

The domestic retail gas price in September continues to increase following the world price from tomorrow, September 1. This is the second consecutive month that the domestic retail gas price has been adjusted upward.

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 September in the Hanoi market is 451,500 VND/12 kg household cylinder; 1,805,800 VND/48 kg industrial cylinder, respectively increasing 3,300 VND/12 kg cylinder and 13,200 VND/48 kg cylinder (including VAT).

According to Mr. Nghiem Xuan Cuong, Head of the Commercial and Residential Gas Business Department - Petrolimex Gas Corporation, the domestic retail gas price in September will increase from tomorrow because the average world gas price contract in September is at 600 USD/ton, an increase of 20 USD/ton compared to August, so Petrolimex Gas Corporation will make adjustments according to the corresponding increase. In addition, exchange rate fluctuations are also a reason for the increase in imported gas prices to Vietnam.

Meanwhile, the price of Petro VietNam Gas cylinders of Vietnam LPG Trading Joint Stock Company (PV Gas LPG Mien Nam) increased by VND 583/kg (including VAT), equivalent to an increase of VND 7,000/12 kg cylinder and an increase of VND 26,235/45 kg cylinder compared to August 2024.

Thus, since the beginning of the year, domestic retail gas prices have increased 5 times, decreased 3 times and remained unchanged once.

In the world market, as of the morning of August 31 (Vietnam time), gas prices increased by 0.42% to 2.146 USD/mmBTU for natural gas contracts for delivery in October 2024.

However, the October contract’s spread over September futures has narrowed this year compared to last year, according to Bloomberg. The narrowing spread signals concerns about late summer supply, with maintenance in Norway and the Russia-Ukraine conflict now front and center for traders.

Europe is facing a tighter gas market as Norwegian operators enter a scheduled maintenance season that has cut daily gas flows to Europe by more than 10% since early August. Norway, meanwhile, supplies about 30% of Europe’s natural gas after most of its Russian gas flows were cut. In addition, gas futures are expected to rise amid the possibility of disruptions to gas supplies from Ukraine before the December 31 expiration of a transit agreement with Russia.

On August 28, Kremlin spokesman Dmitry Peskov said European consumers would have to pay more for natural gas if Ukraine did not extend a gas transit agreement to allow Russian gas to pass through its territory on its way to Europe.

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