Gas price today March 25: Continue to decrease

European natural gas prices have fallen in recent weeks after hitting a two-year high in February, easing concerns about the price Europe will have to pay this summer in preparation for next winter…

World market

Recorded on Oilprice.com at 07:56 on March 25, 2025 (Vietnam time), world natural gas prices decreased by 0.64% (equivalent to a decrease of 0.025 USD) to 3,889 USD/mmBTU after a sharp decrease.

Source: Oilprice.com

European natural gas prices have fallen in recent weeks after hitting a two-year high in February, easing concerns about the price Europe will pay this summer in preparation for next winter.

The Dutch TTF natural gas futures contract, the benchmark for European gas trading, hit a two-year high in mid-February amid the first real winter with prolonged cold weather since the 2022 energy crisis.

Prices have been falling since mid-February as the heating and winter season draws to a close, and solar and wind power output is rising to regain some share of Europe's electricity mix, after a long period of weak winds and little sunshine in Europe during the winter.

Recent declines in natural gas prices in Europe could also help ease electricity prices, which have remained high this winter due to rising natural gas prices.

However, Europe's energy-intensive industry continues to suffer from high energy prices and further measures are needed to address high energy costs, which are putting European industry at a disadvantage.

Europe's first winter, with prolonged cold spells since the energy crisis in 2022, has depleted the EU's natural gas reserves.

As a result, European prices rose in mid-February and concerns arose about the need for further large additional LNG supplies to Europe to support stock replenishment before the onset of next winter.

But prices have fallen in recent weeks as talks have begun on a potential ceasefire between Russia and Ukraine and as the northern hemisphere winter draws to a close. EU leaders are also discussing making the EU’s targets for gas filling its storage facilities on November 1 more flexible, which could ease some concerns about the pace of filling from April onwards.

A group of EU member states, including the largest economies Germany and France, are said to be arguing that to avoid price spikes and market speculation, the bloc should allow more flexibility in its 90% full storage target currently binding on November 1 each year.

Following Russia's invasion of Ukraine in 2022 and the cessation of Russian pipeline gas supplies to most EU countries, the European Commission adopted a target of 90% of EU natural gas reserves by 1 November each year.

But the rigid November 1 target has caused problems for many market participants. Policymakers in countries including Germany, Italy and the Netherlands are concerned that current high gas futures prices for the summer months will make it unprofitable for gas companies and marketers to store gas.

With EU stocks depleting at their fastest pace in seven years after a cold winter, the summer loading season poses a number of challenges in terms of availability, prices and how much Europe will have to spend on additional LNG.

At a meeting last week, several EU energy ministers “mentioned the need for flexibility regarding the proposed gas storage regulation, currently under discussion, as well as a rigorous impact assessment of these regulations,” the EU said.

Last week, Moutaz Altaghlibi, senior energy economist at ABN AMRO Bank, said that although the gas loading target may be relaxed, the gas market will still tighten in the coming months.

ABN AMRO believes that geopolitics, including US tariff and trade policies and Russia-Ukraine peace talks, will continue to be the main drivers of volatility.

“At the same time, the market will monitor the pace of storage refills, while also remaining responsive to factors affecting demand in Europe or key LNG competitors in Asia, such as adverse weather conditions, along with any supply disruptions from key suppliers such as Norway or the United States,” Altaghlibi noted.

Domestic gas prices

Due to the slight decrease in world gas prices, many businesses adjusted domestic retail gas prices down in March, the second month in 2025 that gas prices decreased. In January 2025, gas prices decreased by VND3,500/12kg, due to the world gas price decreasing by USD12.5/ton compared to December 2024.

Specifically, the retail price of Petrolimex gas cylinders (including VAT) in March 2025 in the Hanoi market is 457,400 VND/12kg household cylinder; 1,829,600 VND/48kg industrial cylinder, respectively decreasing by 2,700 VND/12kg cylinder and 10,500 VND/48kg cylinder (including VAT).

Similarly, gas prices of City Petro, Vimexco, Vina Pacific Petro at Pacific Petroleum Trading Joint Stock Company (Gas Pacific Petro) decreased by 167 VND/kg.

Specifically, the 6kg cylinder will be reduced by 1,000 VND/cylinder and the new selling price is 275,500 VND/6kg cylinder; the 12kg cylinder will be reduced by 2,000 VND/cylinder, to 491,500 VND/12kg cylinder; the 45kg cylinder will be reduced by 7,500 VND, to 1,842,000 VND/45kg cylinder; the 50kg cylinder will be reduced by 8,000 VND/cylinder, to 2,046,500 VND/50kg cylinder.

Along with the downward trend, Southern Gas Trading Joint Stock Company (Gas South) announced a reduction in retail gas prices by 167 VND/kg compared to last month, equivalent to a reduction of 2,000 VND/12kg cylinder and 7,500 VND/45kg cylinder.

After adjustment, the retail gas price to consumers fluctuates between VND475,400/12kg cylinder and VND1,784,111/45kg cylinder (including VAT) in the Southeast region. This new price applies to the company's gas brands, including: Gas Dau Khi, VT - Gas, A Gas and JP Gas.

The decrease in domestic retail gas prices is a positive signal for both consumers and businesses. Especially after Tet, when households return to their normal lives and businesses resume operations, the decrease in gas prices will help save on living expenses and production costs.

Source: https://baodaknong.vn/gas-price-hom-nay-25-3-tiep-tuc-giam-247093.html