Price control every Thursday
On November 17, the Government issued Decree No. 80/2023/ND-CP amending and supplementing a number of articles of Decrees 83 and 95 on gasoline and oil trading.
Regarding the price formula and method of managing gasoline and oil prices, the Decree adjusts the time for reviewing and announcing the cost of bringing gasoline and oil from abroad to Vietnamese ports, the cost of bringing gasoline and oil from domestic refineries to ports, and the premium for calculating gasoline and oil prices from domestic production sources from 6 months to 3 months to ensure more timely updates of prices and costs for businesses, creating motivation for businesses to create gasoline and oil sources to supply the domestic market.
The time for operating/announcing gasoline and oil prices has also been shortened from 10 days to 7 days, and gasoline and oil price operations are carried out every Thursday.
Petrol and oil retailers are allowed to purchase petrol and oil from multiple sources instead of just one. The Decree allows petrol and oil dealers to obtain petrol and oil from up to three sources to create competition in petrol and oil discounts in the market, while at the same time increasing the initiative of petrol and oil retailers in sourcing and supplying petrol and oil.
The Decree also eliminates intermediaries in the gasoline and oil business, specifically abolishing the type of general gasoline and oil retail agent to reduce intermediaries in the gasoline and oil distribution system.
The Decree also supplements regulations to strengthen management, inspection and supervision of enterprises in the petroleum business; at the same time, decentralizes the local Department of Industry and Trade to inspect and supervise traders' compliance with regulations in the petroleum business.
Tightly manage the petrol and oil price stabilization fund
The Decree supplements regulations and measures for stricter management and supervision of the Gasoline and Oil Price Stabilization Fund.
Key traders of gasoline and oil are obliged to set aside a Price Stabilization Fund; account for and monitor the Price Stabilization Fund separately through accounts opened at commercial banks or foreign bank branches legally operating in Vietnam (hereinafter referred to as banks) in accordance with the provisions of this Decree and the guidance of the Ministry of Finance. Key traders of gasoline and oil are fully responsible before the law for selecting banks, managing and ensuring the preservation of the balance of the Price Stabilization Fund.
This account is only used for the purpose of setting up and using the Enterprise Price Stabilization Fund according to the announcement on gasoline and oil price management of the Ministry of Industry and Trade.
Every 6 months, before August 15 and February 15 of each year, key traders of gasoline and oil are responsible for sending a specialized audit report (independent) on the gasoline and oil price stabilization fund to the Ministry of Finance and the Ministry of Industry and Trade.
Periodically, before the 15th of each month, the main traders of gasoline and oil are responsible for preparing and sending a report to the Ministry of Finance and the Ministry of Industry and Trade on the implementation of the gasoline and oil price stabilization fund of the previous month, including: the balance of the gasoline and oil price stabilization fund at the beginning of the reporting period; the total output and types of gasoline and oil set aside and used only during the reporting period; the total amount set aside for the gasoline and oil price stabilization fund during the reporting period; the total amount of money used only for the gasoline and oil price stabilization fund during the reporting period; the interest arising on the positive or negative balance of the gasoline and oil price stabilization fund during the reporting period; the balance of the gasoline and oil price stabilization fund at the end of the reporting period; and at the same time, they are responsible for sending a copy of the gasoline and oil price stabilization fund account statement during the reporting period.
"Petrol and oil traders are fully responsible for the accuracy of reported data and information," the Decree clearly states.
A petrol and oil wholesaler who has been administratively sanctioned but repeatedly violates regulations on setting aside, using only, transferring the petrol and oil price stabilization fund or fails to transfer the petrol and oil price stabilization fund according to the provisions of this Decree and guiding documents will be considered for temporary suspension of business or revocation of the Certificate of eligibility to act as a petrol and oil wholesaler.
The suspension period is 30 days or 60 days depending on the severity of the violation.
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