Ministry of Industry and Trade reviews conditions for granting gasoline business licenses

Key enterprises and distributors must report on the status of warehouses, ports, stores and agents, as required by the Ministry of Industry and Trade.

This proposal was sent by the Ministry of Industry and Trade to key enterprises and petroleum distributors following the conclusion of the Government Inspectorate on petroleum management and operation. This report, according to the management agency, is to help them grasp the actual status of compliance of enterprises.

Accordingly, the Ministry of Industry and Trade requires petroleum business units to report on the current status, maintenance and compliance with the conditions for petroleum business licenses, according to the decrees on trading this item (Decree 83/2024, Decree 95/2022 and Decree 80 in November 2023).

Specifically, key enterprises must declare the conditions of the wharves they own or rent, the capacity to receive oil tankers; the warehouses receiving oil and the means of transport. Key enterprises must also report on the distribution system, such as the number of stores they own, rent (from 5 years or more); agents, general agents and franchisees under their system.

In addition, distributors must report on stores (owned or rented), retail agents, and stores affiliated with franchisees. These reports must be sent to the Ministry of Industry and Trade before January 30.

Previously, according to the conclusion of the Government Inspectorate announced in early January, many loopholes in the management of petroleum business and licensing by the Ministry of Industry and Trade were pointed out. In more than 5 years, the Ministry has granted 37 licenses for petroleum import and export (excluding 4 licenses for aviation petroleum business) and 347 licenses for retail distribution.

However, in reality, after being licensed, many key traders have failed to ensure a petrol distribution system. In nearly 3 years, the investment in commercial petrol depots by key enterprises has only reached 15% of the plan.

Wholesale traders and distributors mainly rent warehouses and fuel tanks to meet the conditions for obtaining licenses and certificates. Many wholesalers and distributors only rent warehouses and fuel tanks seasonally to reduce costs and bypass management agencies. Many warehouse and tank rental contracts do not generate shipments or contract liquidation, affecting the market supply.

The Government Inspectorate identified this as one of the reasons in the licensing process, affecting market supply.

After the Ministry of Industry and Trade revoked the licenses of some units due to violations, the market now has 34 petroleum wholesalers (excluding aviation fuel traders) and about 300 distributors. The Ministry of Finance said on January 19 that nearly one-third of petroleum wholesalers owe thousands of billions of VND in taxes, which are difficult to collect.

Mr. Minh

Source link