On the afternoon of January 4, the Government Inspectorate announced the conclusion of the petroleum inspection, which pointed out many violations by the Ministry of Industry and Trade and a number of key enterprises in the management and trading of this product.
Regarding the issuance of Business Licenses for Export and Import of Petroleum and Certificates of Eligibility to Act as Petroleum Distributors (TNPP), according to the Inspection Conclusion, from January 1, 2017 to June 30, 2022, the Ministry of Industry and Trade issued 37 Business Licenses for Export and Import of Petroleum (not including 4 licenses issued to key traders of petroleum supplying to aviation activities) and issued 347 Certificates of Eligibility to Act as Distributors. Due to the provisions of Clause 3, Article 7 and Clause 2, Article 13 of Decree No. 83, the conditions for granting licenses and certificates for petroleum warehouses and tanks "... leased from petroleum service traders for five (5) years or more...".
The permission to rent warehouses and tanks for storing petroleum as a condition for granting licenses and certificates as above has not encouraged key petroleum traders to invest in developing petroleum storage warehouses, leading to difficulty in meeting the requirements for commercial petroleum storage warehouses as prescribed;
Petroleum wholesalers and petroleum distributors mainly rent warehouses and petroleum tanks to facilitate the issuance of licenses and certificates.
Many petroleum traders and distributors sign contracts to rent warehouses and tanks for petroleum only seasonally and based on actual usage to reduce costs. This is one of the reasons leading to violations in licensing and implementation of licensing conditions by the Ministry of Industry and Trade, petroleum traders and distributors.
When conducting an inspection of the conditions after granting the License for petroleum export and import business and the Certificate of eligibility to act as a petroleum distributor, the conclusion was that from January 1, 2017 to June 30, 2022, after being granted the license, many petroleum traders during their petroleum business activities did not ensure the petroleum distribution system as prescribed in Clause 5, Article 7 of Decree No. 83; many contracts for renting warehouses and petroleum tanks did not generate shipments or contract liquidation, affecting the supply of petroleum to the market.
The Ministry of Industry and Trade has lacked inspection, supervision, and loose management, and has failed to promptly detect violations in maintaining conditions for warehouses, tanks, and gasoline distribution systems... to handle them according to regulations in Clause 6, Article 8 and Clause 6, Article 14 of Decree No. 83.
In December 2022, the Ministry of Industry and Trade also announced the conclusion of the petroleum inspection.
According to the inspection conclusion of the Ministry of Industry and Trade, during the inspection period, there were some key traders who reported on their petroleum storage facilities that were not in accordance with reality. In particular, in a short period, there were traders who rented warehouses with a capacity that did not meet the regulations.
Some oil depots of some key traders have not fully implemented regulations such as not submitting oil spill response plans to the provincial and municipal People's Committees for approval; and appraising oil spill response plans according to regulations in Clause 6, Article 7 of the Regulations on oil spill response activities.
Regarding the petroleum distribution system, the inspection conclusion stated that at some points in time, some key traders have not ensured the distribution system according to the provisions of Decree No. 83 and Decree 95 (amending Decree 83) on petroleum trading.
Some traders committed administrative violations of "not meeting the conditions on the gasoline distribution system as prescribed" in 2021.
There are some key traders who have changed the number of agents and franchisees, but have not fully implemented the reporting and registration regime, and registered the adjustment of the distribution system to the Ministry of Industry and Trade according to the provisions of Circular No. 38 of this Ministry.
Accordingly, some companies have committed administrative violations: "Not registering the distribution system with the competent state management agency as prescribed".
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