VINACHEM

Local fuel trading companies again are waiting for a decision from administering agencies to announce further retail price cuts as they are making good profits from VND300-750 from each liter of fuel sold.

According to the base price calculation list provided by fuel wholesale traders, they have been gaining VND733 from each liter of gasoline sold, VND405 from diesel oil and VND253 from kerosene as of early this week, not to mention a fixed profit of VND300 a liter factored into the base price.

A fuel trader in the South told the Daily that the base price has declined strongly compared to November 7, when the Ministry of Industry and Trade requested traders to lower retail prices given steady fuel price drops in Singapore as the key petrol supplier for Vietnam.

The RON 92 gasoline price on November 7 was US$91.58 per barrel, diesel oil 0.05S at US$96.13 a barrel and kerosene US$99.14 a barrel. In the latest trading session on Monday, the prices were US$85.43, US$91.95 and US$94.77 a barrel respectively.

The 15-day average price from November 3 to 18 used to calculate the base price of RON 92 gasoline was US$89.86 a barrel, diesel oil US$95.75 and kerosene US$98.7.

Joint Circular 39/2014/TTLT-BCT-BTC regulates that a team of officials from the ministries of Industry-Trade and Finance is responsible for calculating and announcing the base price and the difference between the current base price and the preceding base price every 15 days.

At present, the Ministry of Industry and Trade’s official website updated the latest base price list on November 6 and import price from Singapore on November 12.

Before the retail price cut on November 7, fuel wholesale traders had been also waiting for a decision of the ministries of industry-trade and finance to revise down their retail prices following sharp crude oil price falls on the global market.

In a related development, local fuel trading firms reported huge profits in the third quarter of this year.

Vietnam National Petroleum Group (Petrolimex), which accounts for a lion’s share on the domestic market, obtained VND406 billion in pre-tax profit in the third quarter. Between January and September, it obtained a pre-tax profit of VND67 per liter or kilo of fuel sold.

Materials – Petroleum Joint Stock Company (COMECO) reported an after-tax profit of over VND9.8 billion in the third quarter, rising VND3 billion year-on-year. From January to September, its after-tax profit surged 45% to over VND28 billion.

Saigon Fuel Company (SFC) obtained over VND26.7 billion in after-tax profit in the Jan-Sept period, rising by VND12.4 billion from the same period of 2013.