Gas price hike sets new record                                   Gas price was raised to higher than they have been in two years on December 1, worrying both consumers and traders.    Gas prices increased by VND70,000-80,000 Due to hoarding and high gasoline demand in the winter, world gas prices in December have sharply increased by USD267.5 per tonne. Along with import taxes, VAT and the exchange rates, Vietnamese gas prices have also set new records. Even though the price of gas has already increased by VND18,000 (USD0.86) per 12-kilo can in November, it continued to rise by VND70,000-80,000 this month. Currently, canisters from Shell Gas Company have the highest price of VND520,000 and VND489,000 for a Facific Gas' can, beating the record of VND477,000 made in March, 2012. Even traders were surprised at the increase. A trader from HCM City said many consumers called them to ask about prices but few made transactions. "Normally we can sell more than 15 canisters a day but today we've only sold six," he said, adding that, "Our business is at its best when prices stay at VND320,000." Phan Thanh Doan, marketing manager of the Citygas Company, said consumption this month would be stagnant. Meanwhile, many traders have hoarded their goods with news about a gas price hike was spread last month. Several consumers now opt to use other means of cooking, while factories that use gas are trying to find a new fuel. Nguyen Sy Thang, Chairman of the Vietnam Gas Association, said they have requested that the Ministry of Finance lower import tax from 5% to 0% so that the gas prices might decrease by VND17,500. Gas companies also said they will issue supporting programmes for consumers in the next days to lower the the prices by VND10,000-30,000. On the other hand, according to a representative from a gas company, state-owned firms are holding over 70% of the market share and domestic factories can satisfy 50% of the demand, so it is not a impossible task to stabilise the price. "World prices are volatile recently while our managing capability and consumers' income are limited. Government needs some stabilisation scheme," said Tran Minh Loan, Chairman of An Pha Petrol JSC. Source: nguoilaodong