Gas prices continue to drop as demand falls

HCM City (VNA) - Retail gas prices will continue to fall sharply in October, because of lower prices on the local and world markets, according to gas trading companies.

Over the past several months, prices have dropped from 300,000 VND (18
USD) per 12 kg canister to 255,000 VND (15.5 USD). In October prices are
poised to drop to 250,000 VND (15 USD).

The price on the world market is 795 USD per tonne, a drop of 25 USD per
tonne compared to early September last year.

Costs for gas, however, were still higher than last year, which has led to
reduced demand, said Hoang Anh, director of Petrolimex Gas Joint Stock Co.,
adding that many companies had switched to coal.

The consumption of gas in the industrial sector has fallen from 50 percent
to 40 percent and in the trading and service sector from 30 percent to 25
percent.

Lai Duc Nam , sales manager of Petronas Vietnam Co. Ltd, said the
volume of inventories was still higher, even though the total amount of gas
imports had declined.

Many gas traders say prices are expected to drop further in the remaining
months of the year.-Enditem