Gasoline price today (May 5): Domestic gasoline will decrease

World oil prices start the new week in the green. Domestic oil prices will be adjusted down.

World oil prices

According to Reuters, at the beginning of the trading session on May 5, both Brent and WTI oil prices unexpectedly increased slightly.

Last week, oil prices recorded their second consecutive week of decline, with Brent crude falling more than 8% and WTI crude falling about 7.7%, about four times the decline of the previous week.

Both Brent and WTI oil started the new week in the green. Illustration photo: Reuters

The plunge in oil prices was driven by concerns about falling fuel demand, as the global economy is hit by the US-China trade war and high tariffs on US imports; the possibility that OPEC+ will extend its production increase into June; and signals from Saudi Arabia, one of the world’s largest oil producers, that Riyadh will continue to ease production cuts and is ready to cope with low oil prices for a long time.

Notably, at the meeting on May 3, OPEC+ agreed to accelerate the increase in oil production for the second consecutive month. Specifically, OPEC+ will increase production in June by 411,000 barrels/day despite falling prices and weaker demand forecasts.

In April, oil prices fell to a four-year low below $60 a barrel after OPEC+ announced a larger-than-expected production increase in May and as U.S. President Donald Trump’s tariffs raised concerns about a weakening global economy.

Saudi Arabia is pushing OPEC+ to accelerate the removal of previous production cuts to punish other members including Iraq and Kazakhstan for not complying with production quotas, OPEC+ sources said. Kazakhstan’s oil output exceeded its OPEC+ quota in April, despite falling 3%.

After 2 weeks of decline, will oil prices set a hat-trick of weekly declines or rebound this week? Illustration: Oilprice

According to Reuters calculations, the increase in production in June by the eight OPEC+ members will bring the total increase in the three months since April to 960,000 barrels/day, corresponding to a 44% relaxation of the voluntary cut of 2.2 million barrels/day.

The Federal Reserve meets this week to make a decision on monetary policy, which could impact oil prices. The US central bank has made it clear that it is in no rush to cut interest rates because the labor market remains strong and inflation risks remain high. However, the market is expecting a 90 basis point rate cut by the Fed later this year.

Domestic retail prices of gasoline on May 5 are as follows:

E5 RON 92 gasoline is not more than 19,238 VND/liter.

RON 95-III gasoline is not more than 19,638 VND/liter.

Diesel oil not more than 17,524 VND/liter.

Kerosene not more than 17,715 VND/liter.

Fuel oil not exceeding 16,524 VND/kg.

The above domestic retail price of gasoline and oil will be adjusted by the Ministry of Finance - Ministry of Industry and Trade in the price management session this afternoon (May 5). Because the world price of gasoline and oil has continuously decreased last week and this week, the domestic price of gasoline and oil will likely also decrease. The decrease will fluctuate in the range of 150 - 500 VND/liter (kg).

Normally, domestic gasoline prices are adjusted every Thursday. However, because last Thursday fell on the May 1 holiday, the price adjustment was made on the first working day after the holiday, May 5.

In the most recent price adjustment period, the price of E5 RON 92 gasoline increased by VND 740/liter, RON 95-III gasoline increased by VND 782/liter, diesel increased by VND 487/liter, kerosene increased by VND 531/liter and mazut increased by VND 564/kg.

Source: https://baolangson.vn/gia-xang-dau-hom-nay-5-5-xang-dau-trong-nuoc-se-giam-5046012.html