Petrolimex profit surge sparks debate over fuel price regulation in Vietnam

In the first half of 2024, volatile global oil prices led Vietnam's state‑owned fuel companies to post strong earnings. Petrolimex reported net revenue of nearly VND 235 trillion, up about 63% year‑on‑year, and a net profit after tax of over VND 2.38 trillion, more than double the same period last year. PVOIL also saw revenue rise to VND 135 trillion, with profit after tax exceeding VND 476 billion, though it posted a net loss of VND 95 billion in Q2 due to higher cost of goods sold and financing expenses.

Financial analyst Ngô Trí Long of the Vietnam Financial Advisory Association cautioned that profit margins remain thin—about 1% for Petrolimex and 0.35% for PVOIL—reflecting the capital‑intensive nature of the sector. He emphasized that higher revenues do not automatically translate into higher profits when input costs rise faster. Long noted that fuel prices are subject to the 2023 Price Stabilization Law, which requires regulators to balance state, enterprise, and consumer interests rather than simply keeping prices low. The recent profit figures do not alone prove that price‑setting mechanisms favor companies over consumers.