the price of price volatilit

How does the volatility of gasoline prices affect a country''''s economy and the lives of its citizens?. Let''''s work together to solve this issue!PRICE VOLATILITY DEFINITION –Khang  A shift

FPT UNIVERSITY - CAMPUS HO CHI MINH

INTERNATIONAL BUSINESS

GROUP ASSIGNMENT MICROECONOMICS - ECO111

CLASS: IB1701 TEACHER: MRS LA THỊ CẨM TÚ

GROUP 4: BÙI TƯỜNG THỊNH NGUYÊN - SS170302

TRẦN YẾN NHI - SS170373 NGUYỄN THẾ BÌNH - SS170327 NGUYỄN HỮU DANH - SS170462 ĐẶNG HÀNG QUỐC KHANG - SS170472

Table of Contents

INTRODUCTION 2

PRICE VOLATILITY DEFINITION 2

THE PRICE OF PRICE VOLATILITY 2

ECONOMIC ISSUES 3

ANALYSIS 3

EXAMPLE 4

EXPLAIN 4

DRAW A DIAGRAM OR GRAPH 5

REFERENCES 7

APENDICES 8

INTRODUCTION – Khang

 Producers and consumers will be in two separate states when prices change

 Producers are glad because they have greater profits when prices rise…

 While Consumers feel compelled to be more cautious when purchasing goods

 Petroleum and natural gas are the commodities with the most evident price to swings in the current circumstances Specifically, fuel is the most widely discussed issue in the world

 So, what's behind the current rise in gasoline prices? How does the volatility of gasoline prices affect a country's economy and the lives of its citizens? Let's work together to solve this issue!

PRICE VOLATILITY DEFINITION –Khang

 A shift in the market price of a product

 Depending on the effects, the price can rise or reduce by a small amount or a large amount

 Volatility is measured by the day-to-day percentage difference in the price of the commodity

THE PRICE OF PRICE VOLATILITY- Danh

 Price volatility can be caused by A variety of factors, including the natural environment

or other factors affecting the product's supply and demand chains

 Price volatility can also be induced by taxes, policies, politics, imports, exports, and so on

ECONOMIC ISSUES –Nguyên

 As an example, consider gasoline, which is a flammable liquid hydrocarbon derived from petroleum and used as the most popular fuel for car or motorbike engines

 Skyrocketed petrol price in March 2022 is the most intense topic that has been discussed between economists because of its realistic and important petrol’s presence in our Vietnamese modern daily life

 Petrol price rise nearly three times from 2020 makes a large portion of Vietnamese people struggle with daily transport so they have to look for a new way to transport

ANALYSIS – Nhi

The crisis between Russia and Ukraine is the primary cause behind the dramatic increase in fuel prices Gasoline prices have risen rapidly due to geopolitical concerns and a widening supply-demand mismatch (The New York Times)

 Crude oil prices increased by more than 15% In January, as the global average reached

$90 per barrel for the first time in almost seven years The major reason is also due to the Russian-Ukraine conflict

 According to economic specialists, fuel prices have returned faster and more than they had anticipated The fact that supply hasn't kept up with demand is part of the explanation People are currently using private automobiles instead of public

transportation swing to the challenging pandemic situation Because the number of personal automobiles was quickly increasing, the supply of gasoline could not keep up with the demand of the consumer market

 However, Under pressure from investors and environmentalists, oil corporations in the West are drilling less oil than they were before the outbreak to keep up with demand Because industry leaders say they're trying to avoid making the same mistakes they did in the past when they pumped too much oil at a time when prices were fast climbing, causing prices to fall

(If there is a surplus of supply, they must decrease the price to balance the market by increasing the amount required.)- ý này không cần nói – khi nào được đặt câu hỏi mới trả lời

 Furthermore, Problems in Russian natural gas supplies to European countries may compel utility firms to generate more energy by burning oil instead of gas This will raise demand and prices all across the world

EXAMPLE – Danh

The gasoline prices from all over the world (including VietNam) rose But the rise in Vietnam is lower than the other countries in the world

EXPLAIN – Danh

The conflict between Russia and Ukraine is intense as the gasoline price in VietNam

has risen from 15.000VND/liter to more than 30.000VND/liter

For Vietnam’s citizens, this is a significant disadvantage But when we compare to the world, the percentage of gasoline’s price rise in Vietnam is much lower than the others

Due to war, the struggle with transportation, high demand has significantly risen

Taxes contribute a large portion of the price, nearly 40% with many kinds of taxes

(For example, On 24/2/2022 RON-95 V is 14.900/litter plus

4.000VND environmental protection tax

 1.490VND (10%) excise tax

 1.190 ( 8%) import tax

 2.500 (10%) V.A.T tax

As you can see, tax covered a large portion of the retail price, nearly 50% of the

original price.) – phần này bỏ nha vì trên ppt đã có rồi – chỉ cần nói là you can see my example on the slide to understand the detail và chốt bằng câu

As you can see màu vàng này là ok nha Danh

Teemo

Volatility Prices influence the supply and demand in the market Many factors contribute to demand volatility, including increased customer choices, product customization, rapid technological improvements, global competition , and upstream supply fluctuations

This Affected a lot of civilian lifestyles, and People needed to find other options to transport Our government ordered ministers to continue comprehensively review, evaluate, amend and improve the legal institution on prices to ensure consistent synchronization and overcome difficulties and obstacles in practice

DRAW A DIAGRAM OR GRAPH - Bình

FINDING AND DISCUSSION – Bình tự tóm ý lại nha

The line chart illustrates how the prices of gasoline changed from late 2021 until now Overall, we can see that petrol prices increased overtimes

On 11-10-2021, the prices of RON 95 and E5 RON 92 are approximately 22.500VND The prices of both petrol gradually increased and reach 24.990VND for RON 95 and 23.660VND for E5 RON 92 in 10-11-2021 It then slowly declined to 22.800 (RON 95) and 22.080 (E5 RON 92) due to the Covid pandemic, which limited the use of vehicles cause people are not allowed to go out After the isolation directive, the prices continuously increased to 26.830VND (RON 95) and 26.070VND (E5 RON 92) in

1-3-2022 Then it immediately skyrocketed and reach its peak at 29.820 (RON 95) and 28.980 (E5 RON 92) in 11-3-2022, this is the highest gasoline price in Vietnam history The reason for this is that the tensions escalate between Russia and Ukraine, which led

to the European embargo against Russia

To sum up, many external factors such as the Covid pandemic or controversy between Russia and Ukraine can create volatility in the gasoline prices

CONCLUSION –Bình

The rapid increase in gasoline prices in recent days has caused the world's economic situation to wobble and changed the structure of people's supply and demand In addition, if the increase in gasoline prices continues, the world's economy will be in bad shape and cause the economy to collapse

REFERENCES

1 (Khánh, M (2022), ‘Vì sao giá xăng dầu lại cao như vậy, bao giờ giảm?’,

https://laodong.vn/tu-lieu/vi-sao-gia-xang-dau-lai-cao-nhu-vay-bao-gio-giam-1002694.ldo)

2 (Bình, N (2022), ‘Điều hành giá xăng dầu: Những vấn đề "nóng"’, https://dantri.com.vn/kinh-doanh/dieu-hanh-gia-xang-dau-nhung-van-de-nong-20220315161217995.htm)

3 (Chal, L (2020), ‘SIX FACTORS AFFECTING COMMODITY PRICE VOLATILITY’, https://chaipredict.com/blog-2/2020/1/2-six-factors-affecting-commodity-price-volatility)

Introduction

Compelled: Force or oblige (someone) to do something

Commodities: Raw material used in the production process to manufacture finished goods

Volatility of gasoline prices: The fluctuate in prices of gasoline

Price Volatility Definition

Day – to – day: Happening regularly every day

The Price of Price Volatility

Supply chains: The activities required by the organization to deliver goods or services to the consumer

Demand chains: Concerned with all the activities a firm undertakes to generate the demand for its goods and services

Economic Issues

Liquid hydrocarbon: An organic compound containing only carbon and hydrogen

Skyrocketed: Increasing very steeply or rapidly

Analysis

A time of intense difficulty, trouble, or danger

Geopolitical: Relating to politics, especially international relations, as influenced by geographical factors

Supply – Demand mismatch: Type 2 myocardial infarctions (T2MI) in which cell death results from an imbalance between myocardial oxygen supply and demand

Outbreak: The sudden or violent start of something unwelcome, such as war, disease, etc

Surplus: An amount of something left over when requirements have been met; an excess of production or supply over demand

Explain

Environmental protection tax: Indirect-collected tax, collected on products and goods when used to cause negative environmental impacts

Exercise tax: A legislated tax on specific goods or services at purchase

Import tax: Tax collected on imports and some exports by a country’s customs authorities

V.A.T tax: Value added tax, an indirect tax on the consumption of goods and services in the economy

Synchronization: The operation of two or more things at the same time or rate

Conclusion

Wobble: Move unsteadily from side to side

In a bad state of health or in a bad condition