Vietnam promises adequate gasoline supply for Q2

Vietnam has enough gasoline for the second quarter even without the supply from Nghi Son Refinery, the Ministry of Industry and Trade assured.

The refinery, which accounts for around a third of domestic supply, has no plans to deliver products in April and May. It also has not made clear its production plan after that, the ministry reported to lawmakers Tuesday.

For this reason, the ministry will not take into account Nghi Son’s supply for the second quarter, but would ensure enough supply “in every scenario”.

It has tasked 10 gasoline distributors to increase its import quota by 2.4 million cubic meters for the second quarter.

Vietnam’s gasoline supply has met with difficulties in the last two months, partly because a cash crunch forced Nghi Son Refinery, one of two such plants in the country, to reduce production from 105 percent to 80 percent, then 55 percent.

The other refinery, Dung Quat, has increased its supply to 105 percent since earlier last month to bolster the market.

With the Russia-Ukraine crisis sending oil prices up, Vietnam’s gasoline prices have risen by 28 percent since the end of December to an all-time high of VND29,820 ($1.30) now.

The government has proposed to lawmakers that a 50 percent cut on environmental tax on gasoline and diesel be implemented to reduce prices.