Vietnam spends US$9 billion on oil imports in 2022

South Korea was the largest petroleum supplier of Vietnam, with 3.22 million tons, up 96% year on year.

Vietnam imported nearly 8.9 million tons of oil and petroleum products in 2022 worth $9 billion, nearly double that of the previous year, according to the General Department of Vietnam Customs (GDVC).

Locals buying petrol products at a gas station in Hanoi. File photo

In December 2022, the country imported nearly 950,000 tons of oil and petrol products worth $823 million, up 22% in quantity and 11% in value against November.

Diesel made up a lion's share of the imported volume with 4.74 million tons, accounting for 54% of the country’s imported petroleum in 2022.

In 2022, the country consumed 1.7 million tons of gasoline, 2.3 times more than in 2021; and 1.46 million tons of jet fuel, representing 2.2 times on-year, and 16% of imported oil.

South Korea was the largest petroleum supplier of Vietnam, with 3.22 million tons, up more than 96% year on year; followed by Singapore and Malaysia with nearly 1.5 million tons and 1.42 million tons, respectively.

The Ministry of Industry and Trade (MoIT) said 2022 was a volatile year for the domestic petroleum market, referring to the shortage of petroleum products in several provinces/cities during the second and third quarters of last year.

Among the reasons was the fact that companies stockpiled oil products at high prices and sold them when prices fell, causing huge losses.

The ministry anticipated growing demand for gasoline and oil as the economy continues the recovery process. In 2023, MoIT allocated to major oil distributors the import of 25.9-26.7 million cubic gasoline, or an increase of 10-15% compared to 2022.

The MoIT urged businesses to stick to the plan to ensure a steady supply for the domestic market and avoid risks of shortage.

However,  in some localities, gas stations were forced to close during the Lunar New Year holiday.

This was because the Nghi Son Oil Refinery suffered a technical problem at the end of December 2022, which led to an internal supply shortage of about 120,000-200,000 cubic meters in January compared to the plan. The problem, however, was solved and the factory has operated normally since January 15 and is now operating at a higher capacity to compensate for this deficit.