Domestic gasoline prices today are expected to decrease by about 500 VND/liter.

Domestic gasoline prices at the management session this afternoon, August 29, are forecast to continue to decrease, following the general trend in the world, the predicted decrease is about 500 VND/liter.

Representatives of many businesses predict that in the management session this afternoon, August 29, gasoline prices may be adjusted down for the second consecutive time.

Ms. Nguyen Thi Bich Huong, Chairwoman of the Board of Directors of Petroleum Trading, Services and Construction Joint Stock Company, commented that the price of E5 RON92 and RON95 gasoline could decrease by 200 - 300 VND/liter, and the price of oil would decrease by about 400 VND/liter, kg.

However, if the regulatory agency sets aside a price stabilization fund, gasoline prices may remain the same as the previous adjustment period, but if the price stabilization fund is used, the decrease will be stronger.

Domestic gasoline prices are expected to continue to decrease this afternoon, August 29. (Illustration: Cong Hieu).

Similarly, the Vietnam Petroleum Institute (VPI)'s gasoline price forecast model also shows that, in the afternoon of August 29, gasoline prices may decrease slightly by 0.7 - 3.3%. Specifically, the retail price of E5 RON92 gasoline will decrease by VND348, to VND20,072/liter, while RON95 gasoline may decrease by VND698, to VND20,612/liter.

VPI's model also forecasts that retail oil prices will decrease slightly this period. Diesel is forecast to decrease by 1.2% to VND18,546/liter; fuel oil is forecast to decrease by about 0.7% to VND15,641/kg; and kerosene will decrease by 0.1% to VND19,123/liter.

According to VPI, the Ministry of Finance and Industry and Trade will continue not to set aside or use the gasoline price stabilization fund.

Previously, in the operating period on August 22, the price of E5 RON92 gasoline decreased by 458 VND/liter, not higher than 20,424 VND/liter. The price of RON95 gasoline decreased by 535 VND/liter, not higher than 21,317 VND/liter. The price of diesel oil decreased by 454 VND/liter, not higher than 18,776 VND/liter. The price of kerosene decreased by 423 VND/liter, not higher than 19,149 VND/liter and the price of fuel oil decreased by 489 VND/kg, not higher than 15,756 VND/kg.

In this operating period, the operating agency continues not to set aside or spend the price stabilization fund for all gasoline and oil products. Thus, up to now, this is the 44th period, starting from October 2023, the operating agency has not used the gasoline and oil price stabilization fund.

Since the beginning of the year, gasoline prices have increased 17 times and decreased 16 times, while oil prices have increased 15 times and decreased 18 times.

On the world market, at 6:00 a.m. on August 29, Brent oil was trading at $79.65 per barrel, down $0.9 from the previous session. WTI oil was at $74.52 per barrel, down $1.01 per ounce. Oil prices continued to fall as many investors weighed geopolitical risks as tensions in the Middle East escalated.

Concerns about Chinese demand also continued to weigh on prices as recent data showed the East Asian nation’s economy was struggling and refinery demand was slowing. Demand in China remains weak and the expected recovery in the second half of the year has not been credible, said Amarpreet Singh, an analyst at Barclays.

However, the risk of losing Libyan oil production and the possibility of an expansion of the Israel-Gaza conflict continue to be the biggest risks to the oil market, limiting the downside momentum of oil prices.

Oil prices were also affected by speculation about a rate cut by the US Federal Reserve. Markets are betting the Fed will ease monetary policy soon after Chairman Jerome Powell said on Friday that the central bank is ready to cut interest rates. The rise in unemployment has fueled expectations that the Fed will cut interest rates next month. Lower interest rates can boost economic growth and oil demand.

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