A series of petroleum enterprises violated regulations causing great losses.

Recently, a series of petroleum businesses such as Xuyen Viet Oil, Hai Ha Petro and Thien Minh Duc were discovered to have committed serious violations in business activities, causing great losses to the state budget.

Specifically, Xuyen Viet Oil Trading, Transport and Tourism Company Limited (Xuyen Viet Oil) was determined to have illegally appropriated and used the Price Stabilization Fund (BOG) and environmental protection tax money.

Ms. Mai Thi Hong Hanh, Chairman of Xuyen Viet Oil, took advantage of the fact that the company was assigned to collect, manage, and use the Price Stabilization Fund, directing Nguyen Thi Nhu Phuong (Deputy Director of Xuyen Viet Oil) not to transfer 219 billion VND of the fund into Xuyen Viet Oil's account, but to transfer it to her own accounts and then withdraw it for personal use. At the same time, Ms. Mai Thi Hong Hanh did not pay 1,244 billion VND of environmental protection tax that was assigned to collect.

The above actions of Ms. Mai Thi Hong Hanh and Nguyen Thi Nhu Phuong constituted the crime of "Violating regulations on management and use of State assets, causing waste and loss". Ms. Hanh and her accomplices bribed a total of more than 31 billion VND to 8 individuals, including 6 former officials of the Ministry of Industry and Trade, to obtain licenses for petroleum import and export business when they did not meet the conditions.

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Oil and gas companies have repeatedly violated regulations, causing losses of thousands of billions of dong. Photo: Minh Hien

Similarly, Hai Ha Petro - a leading petroleum trading enterprise in Thai Binh, was also discovered to have misused the BOG Fund and owed thousands of billions of VND in environmental protection tax. This company did not transfer the amount set aside for the BOG Fund to the fund account as prescribed, but left it in the enterprise's payment account.

The investigation determined that from 2017 to January 12, 2024, Hai Ha Petro had to set aside a total of nearly VND 613 billion for the BOG Fund. However, taking advantage of being assigned to manage this fund, Ms. Tran Tuyet Mai - Chairwoman of the Board of Directors of Hai Ha Petro directly instructed Chief Accountant Le Thi Hue to pay more than VND 295 billion; still owing more than VND 317 billion.

With this amount, Ms. Mai directed the withdrawal of 266.3 billion VND from the BOG Fund, then transferred the money to another company to execute the goods purchase and sale contract.

Thien Minh Duc Group Joint Stock Company - a large petroleum enterprise in Nghe An, was discovered to have committed many violations. The police investigation agency has decided to prosecute the criminal case of "Embezzlement of assets; Illegal printing, issuance, and trading of invoices and documents for payment to the state budget" occurring at Thien Minh Duc and related units.

The fact that businesses have repeatedly violated regulations causing huge losses shows that there are still many shortcomings in policies and capacity of businesses in the petroleum business. Meanwhile, the regulations on management, allocation and disbursement of the Petroleum Price Stabilization Fund have revealed shortcomings. In the last dozens of petroleum price management periods, the Petroleum Price Stabilization Fund has not been used because the level of petroleum price fluctuations is not enough to disburse the fund according to current regulations. Amending the fund management mechanism is urgent.

Urgently issue decree to plug "loopholes" and make the market transparent

Speaking to VietNamNet reporter, expert Nguyen Tien Thoa, former Director of the Price Management Department and Chairman of the Vietnam Valuation Association, said that it is necessary to handle violating enterprises. At the same time, it is necessary to thoroughly overcome management loopholes to avoid repeating such violations.

He emphasized that if these loopholes still exist, even if they are handled and deterred, they will only be patchwork. The important thing is to create a strict management mechanism, not allowing violators the opportunity to repeat their violations. This will not only help strengthen the effectiveness of state management but also contribute to building a transparent and open petroleum business environment while still ensuring discipline. This is a very core requirement.

To patch the “loopholes” as well as ensure publicity and transparency in management, contributing to ensuring national energy security, nearly a year ago, the Ministry of Industry and Trade drafted a new Decree on petroleum trading, replacing Decree No. 83/2014/ND-CP dated September 3, 2014 of the Government on petroleum trading and decrees amending and supplementing Decree No. 83/2014/ND-CP.

The Decree is built on the principle of operating according to the market mechanism with State management, harmonizing the interests of consumers, enterprises using gasoline and oil and enterprises trading gasoline and oil, reducing intermediaries in the gasoline supply chain. At the same time, attaching the responsibility of trading enterprises in ensuring gasoline supply for domestic consumption needs.

Regarding this new draft decree, Mr. Tran Ngoc Nam - Deputy General Director of Vietnam National Petroleum Group (Petrolimex) said that the draft has inherited the advantages of the current decree; amended, supplemented and replaced the provisions to suit the practical situation and current requirements of petroleum business management.

“The draft decree has many positive new points, overcoming shortcomings in the management and trading of petroleum,” Mr. Nam said, pointing out the new regulations on connecting petroleum trading data with competent authorities. Through data connection, all data in the petroleum supply chain will be transparent, and competent authorities can make the most appropriate management decisions.

In addition, according to experts, the Petroleum Price Stabilization Fund is currently not playing its stabilizing role. Because, since the time for adjusting the petroleum price was shortened from 10 days to 7 days, the petroleum price has become closer to the market and no longer fluctuates strongly. Meanwhile, according to current regulations, the Fund is only used by the Inter-Ministry when the difference between the base price of the announced period and the base price of the previous period adjacent to the management period increases by 7% or more. Throughout the past time, the base price increase of most petroleum products has been below 7%, so the Petroleum Price Stabilization Fund has been "inactive".

Expert Nguyen Tien Thoa said: The shorter the price management period, the closer the gasoline price will be to the world price. In the past, when gasoline prices were adjusted every 15-20 days, the Price Stabilization Fund was needed due to unusual fluctuations. Therefore, the upcoming regulations need to clearly define what is considered unusual fluctuations and how they affect the price level in order to have a basis for using the Gasoline Price Stabilization Fund.

Up to now, after 8 times of consulting with businesses, experts, relevant ministries, etc., the regulations in the draft have mostly received consensus, because there are many "reforms" to make the petroleum business market transparent. Some new regulations in the draft decree have also been clearly explained by the Ministry of Industry and Trade.

In addition, the Ministry of Industry and Trade has proactively drafted a Circular detailing a number of articles of the new Decree on petroleum trading and has sent it to relevant agencies and organizations for comments...

Based on the above reality, according to experts, it is necessary to soon issue a new Decree on petroleum trading to improve the market, ensure publicity and transparency in management, and contribute to ensuring national energy security.

Ministry of Industry and Trade: Let businesses decide on their own gasoline prices, reform management Many new regulations in the draft decree on gasoline business have been clearly explained by the Ministry of Industry and Trade. Among them, there are goals and management principles that have been "reformed" to ensure publicity, transparency, and harmony of interests of all parties.