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Why is it so difficult to reduce domestic prices when global gasoline prices have dropped so dramatically?

Why is it so difficult to reduce domestic prices when global gasoline prices have dropped so dramatically?

TTO – Recently, the global price of gasoline has been declining. According to a key enterprise, the retail price of petrol in the country is 1,100 - 3,400 VND/liter higher than the base price in Singapore

The domestic price is higher than the Singapore base price:

On the afternoon of March 15, the chairman of the Board of Directors of a petrol and oil import enterprise told Tuoi Tre that due to the complicated development of the COVID-19 epidemic in China, while the US raised interest rates and sent positive signals in negotiations, the world crude oil price has fallen deeply and is forecast to reach 90 USD/barrel - this will help reduce the domestic petrol price

Leaders of Saigon Petro also stated that both crude oil and finished gasoline prices have cooled, if not dropped significantly. According to this individual's research, the price of finished petroleum products is typically 10 - 20 USD/barrel higher than the price of crude oil

However, in the past, the difference could have reached 40-60 USD/barrel. The spread has recently narrowed, indicating that the upward pressure on gasoline prices has abated. Second, the recent increase in petrol prices was primarily due to the psychological problem of lack of supply, fear of embargo, but current political developments show promising signs.

According to Saigon Petro's leader, the sharp drop in crude oil prices has resulted in a decrease in the daily updated base price in the Singapore market, as DO oil is currently around 128-129 USD/barrel, with a peak price of up to 176 USD/barrel. USD/barrel, which has dropped by more than 26%. However, when imported into Vietnam, gasoline and oil are subject to different taxes, fees, and surcharges, resulting in a higher retail price for gasoline

Currently, the retail price of gasoline in the country differs from the daily base price in Singapore, which is approximately 1,100 VND/liter of gasoline and 3,400 VND/liter of oil. If the base price remains unchanged or falls further, domestic gasoline prices, particularly oil, are likely to fall sharply in the operating period beginning March 21

                                                                                       According to the online newpaper's source



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