Saigon Petro’s employee moving canisters inside a retail gas distribution store. The company along with other gas suppliers announced a drop of $0.1 in their retail cooking gas price from December 1, 2016 in HCM City and its neighbouring provinces — Photo nld.com.vn

Cooking gas price for HCM City and other southern provinces will drop by VND2,500 (US$0.1) per 12kg canister in December compared with the previous month.

On December 1, 2016, retail price for cooking gas from household names such as Vietnam Oil and Gas Group, Vietnam Gas Co Ltd, Vietnam National Petroleum Group and Oil & Gas Company of HoChiMinh City (Saigon Petro Co Ltd) will fluctuate from VND291,000 ($12.8) to VND300,500 ($13.22) per 12kg canister.

Tran Van Phuc, Saigon Petro’s business manager, explained that the drop in December gas price from November was a result of a drop of $15 per tonne in the December world gas price against last month, which is currently at $400 per tonne.

The recent increase in currency exchange rate from VND22.350 per $1 to VND22.730 per $1 also contributed to the downward shift in domestic gas price.

At present, domestic gas production accounts for more than 40 per cent of the market supply, although the retail price for cooking gas is still based on imported gas price post tax, which would hence be affected by the exchange rate.

Vietnamese gas companies had to, therefore, to adjust accordingly within HCM City and its neighbouring southern provinces. — VNS