A customer at a Petrolimex station in Hà Nội. As business activities recover again, the demand for petrol has increased. — VNA/VNS Photo Trần Việt

HÀ NỘI — Petrol producers and traders are expected to benefit from low-priced inventories as the price of petrol rises.

The two leading enterprises in the industry, Petrolimex and PV Oil, recorded that the value of their inventories at the end of the first quarter was nearly double the beginning of the year.

Petrol price has been adjusted up five consecutive times to reach VNĐ31,250 per litre, a rise of 31.3 per cent compared to the beginning of the year.

According to a report by the Ministry of Industry and Trade, the world petrol market has undergone many great changes in recent years. Supply to the market, especially to the European region, continues to be affected by the embargo on products from Russia, while US crude oil inventories continue to remain low.

These factors have pushed up petrol prices. During the price management period from May 11 to May 23, the average world price of petrol products reached US$141.4 per barrel, up 64 per cent compared to the beginning of this year. Diesel oil reached $142 per barrel, up 67 per cent and kerosene touched $137.9 per tonne, up 64.6 per cent.

In the domestic market, as business activities recover again the demand for petrol has increased.

By May 23, the petrol price had increased for the fifth time in a row and set a new record. Specifically, the price of RON 95-V gasoline in region 1 reached VN Đ31,250 per litre, up 31.3 per cent compared to the beginning of this year and up 59 per cent over the same period last year. Diesel prices reached VNĐ26,350 per litre, up 47 per cent compared to the beginning of the year and 74.3 per cent over the same period last year and kerosene prices reached VNĐ24,400 per litre, up 48 per cent and 76.6 per cent, respectively.

In the context of increasing prices, the inventory value of many petrol businesses also increased sharply. Considering the five petrol production and trading units listed on the stock exchange, the value of inventory at the end of the first quarter reached VNĐ49.3 trillion, up 47 per cent compared to the beginning of the year.

By the end of Q1, Petrolimex (PLX) had the largest inventory of VNĐ24.25 trillion, up 84.2 per cent compared to the beginning of the year.

PV Oil (OIL) doubled its inventory value from VNĐ2.58 trillion to VNĐ5.16 trillion. 

For petrol manufacturers such as Bình Sơn Refinery and Petrochemical (BSR), inventories at the end of the quarter reached VNĐ11.94 trillion, an increase of 15.3 per cent compared to the beginning of the year. 

According to many analysists, the rising oil price is expected to help petrol producers and traders improve their profits thanks to low-priced inventories.

With demand recovering and gasoline prices increasing sharply, the revenue of most petrol production and trading enterprises increased sharply but profits were quite divergent. Profit margins mostly fell.

Bình Sơn Refinery (BSR) reported a 65 per cent increase in revenue to VNĐ34.78 trillion; profit after tax reached VNĐ2.3 trillion, up 23.7 per cent. Gross profit margins decreased from 9.7 per cent to 7.5 per cent.

PV OIL (OIL)'s revenue doubled from the same period last year to VNĐ23.29 trillion. Gross profit margins decreased from 6.6 per cent to 4.5 per cent and net profit increased only 54 per cent to VNĐ219 billion.

Petrolimex reported that first-quarter revenue increased 75 per cent to VNĐ67 trillion and profit after tax decreased by 65 per cent ​​to VNĐ208 billion.

The group said demand recovered after production and business activities gradually returned to a normal pace. However, its Nghi Sơn Refinery and Petrochemical Factory was scheduled to cut production output to below 55-80 per cent. With the leading role in the distribution of petroleum in the domestic market, to ensure uninterrupted supply and timely response to domestic demand, the group has changed its import plan and sought immediate supply with high prices from other suppliers, reducing gross profit margins in the petroleum business. — VNS