Vietnam’s Fuel Prices Skyrocket to Two-Month Peak amid US-Iran Tensions

In Vietnam, gasoline and diesel prices soared to their highest levels since May 28 on Thursday afternoon. The popular fuel E10 RON95 rose by 6.6%, reaching VND22,850 (US$0.87) per liter, while Biofuel E5 RON92 experienced an increase of 7.2%, costing VND22,380 per liter. Diesel prices also jumped by 7.2%, coming in at VND27,620 per liter.

Global Fuel Prices and Local Shortages

This surge in fuel prices aligns with a global trend observed over the past week, primarily driven by the escalating conflict between the U.S. and Iran. The Ministries of Industry and Trade and Finance note that RON95 has increased by 5%, costing $121.3 per barrel, and diesel has followed suit with a 5.4% hike, amounting to $159 per barrel.

Alongside these rising costs, Vietnam has been contending with fuel shortages, particularly of diesel. Fuel retailers across Hanoi, HCMC, and other areas have reported difficulties in stocking enough supplies. Some tanker trucks have had to wait up to four days to collect supplies. Meanwhile, certain gas stations have either limited their sales or temporarily halted operations due to lack of inventory.

Fuel Procurement and Market Dynamics

Tran Huu Linh, the director general of the Agency for Domestic Market Management and Development under the Ministry of Industry and Trade, attributes these issues to the Middle East conflict disrupting fuel procurement by petroleum wholesalers. Additionally, amplified demand in certain areas has put a strain on supply, leading wholesalers to ration the volume of fuel distributed to the market temporarily.

However, Linh maintains that the nationwide fuel supply remains stable, although localized shortages, especially of diesel, may occur. Linh also suggests that some businesses might be withholding inventory, anticipating a potential increase in prices.