From March 1, 2024, retail gas prices in Vietnam have increased for the third consecutive month this year. In Hanoi, the price of a 12kg Petrolimex domestic gas cylinder (including VAT) is now 460,740 VND, up 2,640 VND per cylinder, while the 48kg industrial gas cylinder is priced at 1,842,760 VND, an increase of 10,560 VND per cylinder compared to the previous month.

According to Mr. Nghiêm Xuân Cường, Head of Domestic and Commercial Gas Sales at Petrolimex Gas Corporation, despite the global average gas contract price for March remaining at 635 USD/ton (unchanged from the previous month), fluctuations in the exchange rate have led to this adjustment.

The domestic gas supply currently meets only about 60% of consumer demand, with the remaining 40% being imported. Although the import price of gas for March remains at 635 USD per ton, the increase in the USD/VND exchange rate has led to a domestic price rise of approximately 1,000 VND per 6kg cylinder, 2,000 VND per 12kg cylinder, and 8,000 VND per 45kg cylinder.

The price adjustment for March is expected to have a relatively minor impact on household cooking expenses. However, for businesses such as restaurants, catering services, poultry farms, and hospitals, which consume large amounts of gas, monitoring prices and securing wholesale purchases is crucial.

Globally, on the final trading day of February (February 29), the April delivery price for natural gas dropped by 0.43% to 1.86 USD/mmBTU. European gas prices remain at their lowest in nearly three years due to reduced demand and higher-than-expected storage levels, despite cold weather and decreased renewable energy production.

Tom Marzec-Manser, Head of Global Gas Analysis at ICIS, noted that global gas demand may continue to exceed supply until new liquefied natural gas (LNG) production projects in Qatar and the U.S. become operational in 2026.

In Asia, gas prices have fallen to their lowest levels in nearly three years due to weak demand in both Asia and Europe, with spot gas prices in Asia dropping nearly 30% since the beginning of the year. According to the Gas Exporting Countries Forum (GECF), global LNG demand is projected to increase by 1.5% in 2024 and could rise up to 22% by 2050.

GECF has warned of the possibility of record-high spot LNG prices and significant volatility in both the European and Asian markets.

Source: Vietstock