PetroVietnam has asked the government to approve a price increase of up to 30 percent for gas sold to power plants from April 1 onwards.
Under the proposal, the price of gas from the Nam Con Son basin will go up from US$3.85 per million BTU (British thermal unit) to $4.6. Meanwhile, gas from the Cuu Long basin will cost $4.6 per million BTU, a 30-percent increase from $3.55.
The hike will not be applied for the 3.55 billion cubic meters of gas from Nam Con Son that have been included in contracts signed earlier between PetroVietnam and gas-fired power plants. This figure accounts for 53 percent of the total gas volume that PetroVietnam will supply the electricity sector this year.
PetroVietnam also said its proposal is in accordance with current market trends and the recent increase in electricity prices.