LPG (GAS) PRICE CALCULATION FORMULA

22/08/2024

LPG – Liquefied Petroleum Gas (also known as gas) is an important fuel, widely used in many fields and industries. However, not everyone understands how to calculate and the factors affecting the fluctuation of LPG prices. In this article, DATA will introduce the formula for calculating LPG prices, helping you grasp the cost mechanism and factors affecting prices. From there, you can adjust your consumption or business strategy more effectively.

LPG Price Calculation Formula

**Price = (CP + Premium)(1+5%)(1+10%) * Exchange Rate (VND)**

In there:

CP Price: (Contract Price) is the reference price announced by major suppliers such as Saudi Aramco to price LPG in the international market. The price changes monthly according to the world market and is usually announced at the end of the month and applied from the beginning of the following month. Unit: USD/Ton.
Pre Price: called Premium, this is the import cost, domestic costs include delivery, storage, pumping, transportation, insurance, management and other costs. Pre is fixed for 1 year and is updated in January every year according to import costs. (USD/ Ton)
Import tax: 5%
Value added tax (VAT): 10%
The applicable exchange rate is the USD selling rate of Vietcombank Head Office applied on the date of quotation confirmation of the month of delivery.

LPG Price 2024