Difficulties from the oil and gas market

Due to the influence of the new variant Delta, the world economy showed signs of "fragile" recovery. The demand for crude oil of the Asia-Pacific region and Southeast Asia is forecasted to be decreased in the second half of 2021 because of the difficulties of consumption market faces. Experts predict that the Covid-19 epidemic will continue to severely affect all economic activities in 2022, slowing down the recovery process in some economies in the region, including Vietnam.

Due to the complicated development of the Covid-19 epidemic, many provinces and cities in Vietnam have implemented social distancing according to Directive No. 16/CT-TTg. This has had a large impact on the production and business activities of enterprises. Gasoline demand dropped sharply because there was no consumption market. Specifically, retail sales of petroleum products of PVOIL in August 2021 decreased by 80% in Ho Chi Minh City and southern provinces, 60% in Hanoi, total market demand decreased by about 40%.

The epidemic also led to a decrease in market demand for gas products, especially the amount of gas mobilized for power generation decreased sharply. Specifically, mobilization for electricity production in the first 7 months of the year in the Southeast region only reached 94.2%, the Southwest region reached 72.8% compared to the plan of the Ministry of Industry and Trade. In the last months of 2021, gas consumption will be even lower when the southern provinces and cities are still implementing social distancing, factories and households using gas as raw materials and fuel will stop operating active or idle.

Contact with Vinacontrol experts for advice on solutions: