The retail price of cooking gas has been given the green light to rise for the first time in October by state agency.

The new prices will range from VND434,000-449,000 for a 12-kilogram gas cylinder, up 3-4 percent month on month.

The approval for price hike was given five days after all five liquefied petroleum gas (LPG) wholesalers registered with the Price Management Department under the Ministry of Finance.

According to the ministry, as of October 2, all the five LPG wholesalers had submitted the registration dossier for price adjustment to the department.

They were the LPG trading arm of Vietnam Gas Corporation, Saigonpetro Co; Petrolimex Gas Co - Hanoi Branch, and Southern Liquefied Petroleum Gas Joint Stock Co (PV Gas South) and Northern Liquefied Petroleum Gas Joint Stock Co under PetroVietnam (PV Gas North).

Also, the Price Management Department has also received registration dossier of Eastern LPG Co which is not subject to price registration to the department.

After reviewing the prescribed registration records of those enterprises, the ministry said the wholesale prices at main distributing facilities at local ports and other places increased by 4.41 percent - 5.38 percent over September.

As the world’s contract price (CP) of LPG in October averagely increased by $45 per ton month on month, the cost of gas imports to Vietnam and other costs, calculated on import prices, increased by VND1,358 per kg in Vietnam.

The rise is equivalent to a VND16,299 increase for a 12-kg gas cylinder, said the department.

Therefore, the enterprises are permitted to increase gas prices from VND13,500 to VND16,590 per 12-kg cylinder depending on the brands.

As a result, the retail gas prices to consumers in Ho Chi Minh City this month will be averagely at VND434,000 per 12-kg cylinder depending on brands, an increase of VND16,000 VND per 12-kg cylinder. It is a 3.83 percent month-on-month increase.

The prices in Hanoi will be at VND449,000 per 12-kg cylinder on average (depending on brands), an increase of VND13,464 per 12-kg cylinder depending on brands. It is a 3.09 percent rise over September.

Price Management Department said the price increase of the five businesses from October 1 in accordance with an increase of CP following the adjustment on the world market.

However, a number of petrol and oil trading business has yet to comply with price registration regulation.

Specifically, on October 2, the department received PV Gas North’s registration which dated the price adjustment is on October 1, while the official registration date was one day later.

In September and August, local cooking gas price increased VND51,000 and VND52,000 per 12-kg cylinder month on month, respectively. The price hike is said to follow the worked trend.

Local cooking gas price has rose 8 times, about VND260,000 per 12-kg cylinder in total, and declined 4 times, about VND160,000 per 12-kg cylinder in total, so far this year.