At the beginning of February, Mrs. Hoa, a beef noodle seller in An Hoi Dong Ward (HCMC), bought a 12 kg gas cylinder for 440,000 VND. When the cylinder was nearly empty and she ordered a new one, she was quoted a price of 495,000 VND, an increase of 55,000 VND. “The dealer said the price could increase further if the supply is delayed,” she said.
Surveys at various gas dealers in HCMC show that retail prices have continuously risen since early March, with common adjustments ranging from 20,000 to 80,000 VND per 12 kg cylinder, depending on the area.
Mr. Hoang, the owner of a gas dealership in Tan Thoi Hiep Ward, said his store just raised the price by an additional 10,000 VND per cylinder compared to the previous day, to 480,000 VND. This price is about 40,000 VND higher than last month. According to him, the store usually sells 30-40 12 kg gas cylinders each day, but since the beginning of March, the supply from distributors has decreased to about 15-22 cylinders.
A similar situation is occurring at a store in An Hoi Dong Ward. Mr. Thanh, the store owner, said the current retail price is about 495,000 VND per 12 kg cylinder, an increase of about 50,000 VND compared to last month. However, the store can no longer proactively import goods as before and depends on the allocation from the supplier.
Currently, about 70% of Vietnam’s imported LPG comes from the Middle East, so conflicts in this region can disrupt the supply chain. To avoid supply disruptions, importers are looking to diversify their sources while increasing domestic LPG production and encouraging the use of alternative energy sources.
Mr. Nguyen Ngoc Luan, General Director of Southern Gas Trading Joint Stock Company (PGS), said the company is supplying domestic LPG to the area from Ca Mau to Nghe An with a production of about 13,000-15,000 tons per month. About half of the production is purchased from domestic plants, while the rest depends on imported sources.