Southern Vietnam Reports Fuel Shortages Amid Global Volatility

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A petrol station in An Giang Province announces it has run out of fuel on 29 August. Photo by VnExpress/Nguyen Khanh
A petrol station in An Giang Province announces it has run out of fuel on 29 August. Photo by VnExpress/Nguyen Khanh

Provinces in southern Vietnam have reported fuel shortages as petrol stations run out of supplies.

Six gas stations in Tinh Bien District, An Giang Province, that receive their supply from Dai Dong Duong Petroleum JSC in Ho Chi Minh City, have stopped selling fuel since Monday, according to VN Express.

Operators say they have been unable to purchase fuel from distributors for the last five days.

The shortage has been linked to seven fuel distributors who had their import licenses revoked in violation of safety and stockpiling regulations.

Meanwhile, operators say distributors are giving priority to companies within their own networks after learning that market prices are to increase.

One petrol station owner in An Giang’s Cho Moi District told VN Express that his station had been out of diesel since Sunday, however, the distributor would not send supplies until 6 September.

The petrol station owner said he had not bought enough gasoline to meet demand for fear of making a loss after prices rise.

According to the An Giang Market Management Department, as of Monday, 19 petrol stations across the province had closed while 36 had announced they were running out of fuel, accounting for nearly 10% of gas stations in the province.

The Mekong Delta province of Dong Thap has reported a similar situation, where 10 petrol stations have reportedly closed temporarily citing “personal reasons,” when it is more likely they don’t want to sell petrol to void losses.

The province’s trade department told the media it received applications from petrol stations requesting permission to suspend operations for three months.

Similar reports have come from other southern provinces, including Dong Nai Province and Ho Chi Minh City.

The Vietnam Petroleum Association suggested on Monday that the Ministry of Industry and Trade adjust fuel prices earlier than usual due to fluctuations in global fuel prices, with industry insiders saying the current regulation of adjustments every ten days does not allow local businesses to keep pace with price fluctuations.