GASONLINE, OIL AND GAS PRICE INCREASE
In recent days, the price of petrol and gas has increased continuously, causing a significant impact on the lives of people as well as businesses at home and abroad. As of March 14, 2022, gasoline prices have been adjusted 7 times and reached the milestone of up to 30,000 VND/liter. The sharp increase in oil, gasoline and gas prices is a factor that has a strong impact on businesses and the Vietnamese economy in particular and the world in general.
Image: The chart of domestic gasoline price fluctuations from December 25, 2021 to March 11, 2022 (Unit: VND/liter)
Image: The chart of domestic oil price fluctuations of Mazut N02B (3, 0S) from January 11, 2021 to March 11, 2022 (Unit: VND/kg)
Image: 2022 Lasted LPG Price (from December 2021 to March 2022)
Read more: 2022 Lasted LPG Price
CAUSES FOR THE PRICES OF PETROL, OIL, GAS STRONGLY INCREASED.
The political conflict between Russia and Ukraine is increasingly escalating. Although a negotiation between the two countries has been held, up to now the war situation between the two sides is still very tense. Political tension in Eastern Europe pushed the world oil price up to 105 USD/barrel – the highest level since 2014. Especially on 5/03/2022 RT News Agency (Russia) (local time) issued a notice: “The Yamal-Europe pipeline has halted all westbound gas supplies, meaning the flow from Russia to Germany has been suspended indefinitely”, the main “ow” closing the valve of the century” has made it difficult for European countries in particular and the whole world in general to find alternative sources of supply because Moscow is meeting nearly 40% of Europe’s gas demand through This pipeline and the shutdown could cause gas prices in Europe to skyrocket. When the price of oil and gas increases, it is also a time when the world has to solve the problem of other costs that will increase such as transportation costs, prices of raw materials and goods.
The shortage of oil supply around the world is also one of the reasons why oil prices have skyrocketed. Although the Organization of the Petroleum Exporting Countries and its partners (OPEC+) pledged to increase supply by 400,000 bpd (Barrels Per Day), the increase only reached 150,000 bpd at the end of January. According to the International Energy Agency (IEA), by the end of January 2022, crude oil reserves of 38 member countries of the Organization for Economic Cooperation and Development (OECD) were only about 2.7 billion barrels, the lowest in the past 7 years.
THE PRICE OF GASOLINE, OIL, GAS INCREASED STRONGLY – GREAT PRESSURE ON INFLATION AND MANUFACTURING CONSUMER GOODS.
After Covid 19, the demand for oil increased sharply from the economies as countries carried out the campaign to reopen and recover their economies. Many countries continue to loosen controls and restore economic activities, especially manufacturing, transportation, tourism and aviation activities. However, the sudden increase in oil and gas prices can make the economic recovery difficult and stagnant. Because, the increase in the world price of gasoline and gas will increase the price of imported and domestic raw materials. In the production of goods and services, depending on the production process of each industry, it can be seen that most industries, more or less, use petroleum and gas.
Some of the most affected industries can be mentioned as maritime transport, fishing. Therefore, in addition to the direct impact of increasing product prices, the increase in gasoline and gas prices also increases the price of goods in circulation, putting pressure on inflation, reducing the competitiveness of services and goods. domestic production, negative impact on a large scale.
In addition, other industries such as manufacturing and farming are also affected by the increase in oil and gas prices because these industries all use gasoline, oil or gas to operate machinery. The global economy is starting to accelerate again after a long time fighting the Covid-19 epidemic, but the war situation and oil and gas prices are making the race more bumpy and difficult.
