Vietnam gasoline price surges to all-time high

The gasoline price in Vietnam rose by more than VND600 (2.6 cents) a liter on Wednesday to a record high.

The price of RON 95 and E5 RON92 gasoline climbed by VND920 and VND600 to VND31,570 and VND30,230 ($1.3) a liter respectively, while diesel oil jumped by VND840 to VND26,390.

This is the fifth consecutive rise since April 21, with a total price increase of VND4,260 and VND3,760 ($0.16) per liter for RON 95 and E5 RON 92 respectively

Rising fuel and raw material prices have driven up Vietnam's consumer price index (CPI) in May by 0.38% against April, according to General Statistics Office (GSO).

The agency attributed the surging prices to adjustment of domestic gasoline costs in line with the global trend, as well as rising raw material prices due to global supply chain disruption.

CPI climbed by 2.25% on average in the first five months of 2022, but this was smaller than the increases of the same period during 2017-2020.

Despite surging oil and raw material prices, Vietnam's inflation may be well under control this year, at 3.7%, below the central bank’s target of 4%, according to HSBC.

Inflation pressure remains at a low level compared to other ASEAN countries, the bank reported in mid May.

Earlier, Nguyen Bich Lam, former head of the GSO, on May 12 said he expected Vietnam's inflation to be 4-4.5% in 2022, which could exceed 5% in 2023 in case high inflation rates persist in its key partner economies like the U.S., the EU, and South Korea.

In April, Standard Chartered forecast Vietnam’s inflation in 2022 and 2023 at 4.2% and 5.5% respectively, due to supply-side factors including rising commodity prices, especially given the current global geopolitical tension.