As of Wednesday, local cooking gas suppliers announced enormous price increases, while earlier, milk producers also shocked consumers with their new pricing scheme.
Cooking gas prices rose by VND42,000-45,000 (US$2.16) a 12-kilogram cylinder to VND425,000-464,280 a cylinder, with suppliers claiming the soaring import prices, which shot up by $145 a ton month on month, as the main cause for the hike.
Prices have been hiked as many as three times within the very first month of this year, with the total increase of VND74,000.
Cuong, a gas distributor in Ho Chi Minh City’s Thu Duc District, said that although he had been informed of the price hike beforehand, he was still shocked to learn of the new price list provided by the suppliers.
“I only managed to sell four 12-kg cylinders today, instead of the usual ten,” Cuong lamented.
Meanwhile, distributors of Saigon Petro operating in HCMC and the southern province of Long An said they no longer receive commissions worth VND7,000 per cylinder as before the Lunar New Year.
Le Thi Anh Man, deputy chairwoman of the Vietnam Gas Association, said that increasing import prices are not the main culprit for the skyrocketing domestic cooking gas prices.
“The second cause is that cooking gas imports are subject to the new 5 percent tariff as of the beginning of this year, instead of 2 percent,” Man elaborated.
“The association will petition for a tax cut to support gas suppliers and consumers.”
Powder milk prices skyrocket, too
Milk dealers around HCMC said prices have risen by 7 to 19 percent, or VND10,000 – VND100,000, a can since earlier this week, as the producers have adjusted the product design, enhanced product quality, and cut commissions.
Vinamilk said one of its new products will be sold at a 9 percent higher price than the old product line, but are still 40 percent lower than imported products with similar quality.
Enda Ryan, CEO of Mead Johnson Vietnam, said all of the new products are 10 percent costlier than the old ones, thanks to their nutritious additions.
“Buying power has slumped due to the skyrocketing milk prices,” said Tung, a milk dealer in Phu Nhuan District.
“Consumers are extremely hesitant in choosing the formula milk since an imported product can now cost up to VND1 million.”
