Saigon Petro, Saigon Gas, Giadinh Gas, Shell Gas and Than Tai Gas will all be charging customers more for gas. Vina Gas, VT Gas and BB Petco have not yet officially announced increases.
This is the first time major domestic gas producers have raised their prices at the same time. The latest increases have been the highest yet.
Tran Minh Loan, General Director of Anpha Sai Gon Petroleum Joint Stock Company said the increase was mainly due to a surge in global gas prices from US$125 in early January to $505 per tonne.
Nguyen Thien Phong, head of Saigon Gas business division, said another reason for the increase was the failure of domestic gas retailers to import enough gas for domestic demands.
The Middle Eastern countries - the world's major gas suppliers - had been slowing down production, Phong said.
The domestic retail price for 12kg gas tanks will continue to rise in the coming months as global gas prices fluctuate and domestic gas retailers struggle to find enough warehouses for gas reserves, Long said.
Domestic gas retailers increased their gas retail prices by VND10,000-13,000 per 12kg tank on the first day of 2009 and by VND15,000 per tank in mid-January.
PetroVietnam Gas Corporation (PV Gas) supplies 60-70 per cent of the country's gas demands. According to its statistics, domestic gas demand reached 900,000 tonnes in 2008 and is expected to reach 1.1 million tonnes in 2010.
There are 80 gas traders in Viet Nam and 5,000 sales agents. But traders have poor technical infrastructure, inadequate warehouse space and poor transport. (VNS)
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