HCMC faces gasoline shortage

Nguyen Thi Kim Ngoc, deputy director of the city Department of Industry and Trade, told reporters Thursday three other gas stations have shut down for repairs.

Gasoline distributors have not supplied enough stocks to some stations, the department admitted.

They have not imported enough gasoline to meet the demand or temporarily stopped importing amid the global price volatility, with industry insiders saying the current system of adjusting prices every 10 days does not allow businesses to keep pace with price fluctuations.

The government sets retail prices on the first, 11th and 21st of each month, and distributors are not allowed to change prices in between even if global rates fluctuate.

Gas stations are also unhappy that their commissions have been cut to zero or near zero, and many want to close down.

The manager of a business that owns more than 10 gas stations in the city said: "With the commission cut to zero, each station racks up losses of several hundred million dong every month and does not have money to pay employees."

A businessman who owned two fuel stations said he has shut down one because he was losing hundreds of millions of dong every month and could not to pay his employees.

"In the next few days, after we liquidate the inventory, we can apply to stop doing business."

Currently a liter of gasoline costs VND20,730-21,440, a 13-month low.