Where is the price of gasoline in Vietnam compared to the world?

On the afternoon of 4/13, the Ministry of Industry and Commerce – Finance decided to reduce 613 VND / liter for E5 RON 92 gasoline and 621 VND / liter for RON 95 gasoline. The maximum retail price for E5 RON 92 gasoline is 11,343 VND / liter. liters and RON 95 gasoline are 11,939 VND / liter.

The national price of gasoline is at the lowest level since March 2009. According to Global Petro Prices, the price of RON 95 gasoline in Vietnam is the twentieth lowest in the world.

However, the comparison of cheap or expensive gasoline is only relative, when the income gap between countries is not taken into account.

Where is the price of gasoline in Vietnam compared to the world?

In the United States, gasoline prices vary from state to state. However, the average price of RON 95 gasoline is USD 0.591 / liter, equivalent to VND 13,770 / liter. This price is higher in Vietnam 1,831 VND / liter.

The price of gasoline in the United States increased or decreased mainly depending on the fluctuation of the world oil price because the price structure contains 53% of the cost of crude oil. Additionally, 12% is for refining and profits, 18% is for marketing and distribution costs (plus marginal profits), and 17% is for local, state, and federal taxes.

In China, the price of RON 95 gasoline is 5.9 yuan / liter, equivalent to VND 19,525 / liter. Compared to Vietnam, this price is 63.5% higher.

Therefore, to fill the fuel tank of a Toyota Camry 2.5Q with a capacity of 70 liters, consumers in China must pay an additional 531,000 VND compared to when they pour in Vietnam.

In Southeast Asia, only Malaysia has the lowest RON 95 gasoline price (MYR 1.25 / liter, equivalent to VND 6,734 / liter) lower than in Vietnam.

Meanwhile in Thailand it was 25,485 baht / liter, equivalent to VND 18,150 / liter, higher than in Vietnam at VND 6,211 / liter; in Singapore it was SGD 1,986 / liter, equivalent to 32,713 VND / liter, higher than in Vietnam 20,774 VND / liter; in Laos it is LAK 9,720 / liter, equivalent to VND 25,444 / liter, higher than in Vietnam 13,505 VND / liter.

Venezuela continues to be the country with the lowest price of RON 95 gasoline in the world (6 VEF / liter, equivalent to VND 23 / liter) thanks to the State subsidy policy. The place with the highest price of RON 95 gasoline in the world is Hong Kong, with a retail price of HKD 16.74 / liter, equivalent to VND 50,328 / liter.

The price of RON 95 gasoline in some oil exporting countries such as Qatar is 1.3 QAR / liter, equivalent to VND 8,318 / liter; in Saudi Arabia it is 1.47 SAR / liter, equivalent to 9,110 VND / liter or in the UAE it is 1.8 AED / liter, equivalent to 11,417 VND / liter.

Currently, OPEC + and some oil-producing countries have committed to reducing production, however, the price of crude oil is still at an all-time low. At the close of the session on 4/18, the price of WTI oil was $ 18.44 / barrel, Brent oil was $ 28.3 / barrel.

If you don’t charge fees, Vietnam’s gasoline price is the third cheapest in the world

According to the Ministry of Finance – Industry and Commerce, the average price of RON 95 gasoline in the world 15 days before the adjustment period of April 13 was US $ 21,267 / barrel (a decrease of USD 4,401 / barrel compared to the previous period). Therefore, one liter of RON 95 gasoline imported into the port has the original price of US $ 0.134, equivalent to VND 3,117 / liter.

Decree 83/2014 / ND-CP on oil and petroleum trade shows that the gasoline price structure must “carry” 4 taxes, including the 20% import tax (equivalent to VND 624), the special tax consumption of 10% (corresponding to VND 312), VAT 10% of the sale price (equivalent to VND 1,085) and fixed environmental protection tax of VND 4,000 / liter.

Recently, the Ministry of Industry and Commerce proposed to reduce the environmental protection tax on gasoline. Photo: Van Hung

In addition, each liter of gasoline must also add to the commercial expense standard (VND 1,050 / liter), the normal profit (maximum VND 300 / liter), the creation of a stable fund (in the adjustment period of 13/4 with RON 95 gasoline is 1,400 VND / liter) and the profit of the business. The sum of 4 taxes and maximum fees is 8,771 VND.

Meanwhile, each liter of RON 95 gasoline currently has a retail market price of VND 11,939. Total taxes and tariffs on a liter of gasoline represented around 73.5%, while taxes represented 50.5%.

If all taxes and fees are subtracted, the minimum sale price of RON 95 gasoline in the country will be VND 3,168 / liter. This price is even lower than the country with the third lowest gas price in the world, Sudan (7,699 SDG / liter, equivalent to 3,238 VND / liter).

(According to Zing)