Fuel stations in Vietnam’s central city choose to close shop as margins decline

Many filling stations in Huong Thuy Town of the central province of Thua Thien displayed “Run out of petrol” signs and closed shop. “We have decided to stop selling petrol at the stations under our chain to cut losses,” said Pham Truong Nguyen Phuong, deputy director of Huong Thuy SJC, which manages the filling stations. Petrolimex explained that the prices of imported oil and petrol commodities remained high, and the cost of A92 gasoline in Singapore has reached US$132.7 a barrel. Singapore is the country’s main source of petroleum. The average import price for A92 gasoline in March was up by 4.55% compared to a month earlier, at US$134.48 a barrel. Local wholesalers have been forced to cut commissions for their general dealers, who get the fuel from the wholesalers’ depots which now range from VND360 (US$0.017) to VND400 (US$0.019) a liter. This means that other fuel retailers receive only VND100-200 (US$0.004 –0.0095) for every liter of gasoline they sell. Those in rural areas receive even lower, only VND50 (US$0.002) a liter. (April 13, 2012)