Mr. Nguyen Ham Ha, owner of a gas station in Thanh Chi commune, Thanh Chuong district, shared: Gasoline retail is currently in a state of unstable operations, losses and financial difficulties due to very low discount rates.
Specifically, at the beginning of October, gasoline prices were discounted from VND1,500/liter to more than VND2,000/liter. However, since October 15, gasoline discounts have suddenly dropped to less than VND500/liter, at times down to VND450/liter.
With this discount, it is not enough to cover the cost of renting the premises and paying the salaries of 2 workers, normally the salary of a worker is over 6 million VND/month/person. Now that the period is difficult, we can only pay 2 million VND/person/month. The workers understand the situation of the low discount, so they also share with the store.
Mr. Nguyen The Cuong - Head of the Economic - Infrastructure Department of Thanh Chuong district said: Thanh Chuong district has 26 gas stations, from 2022 to now, 2 gas stations have stopped operating due to the low gas discount. The district hopes that related sectors will soon have solutions to supply and demand of gas so that people can conveniently do business and travel.
In recent times, Thanh Chuong district has coordinated with Market Management Team No. 8 to regularly inspect and supervise the sale of gasoline at retail gasoline stores in the area, remove difficulties and obstacles, and prevent the situation of stopping sales without justifiable reasons; ensure that sales at gasoline stores are not interrupted, especially before the gasoline price adjustment cycle.
In Dien Chau district, many gas stations are currently struggling to operate. The owner of a gas station in Dien Ngoc commune, Dien Chau district shared: Every day we sell 600-700 liters of gasoline and oil, currently the discount rate is only 450-500 VND/liter of gasoline and oil. The business is not profitable, not even enough to cover the transportation costs from the warehouse to the gas station. If we calculate all the costs of sales, electricity, employee salaries, bank interest, for each liter of gasoline sold, the business is having to make up for the loss.
“Gasoline is an essential commodity, so whether making a profit or a loss, businesses are still forced to sell it. If they stop selling, they must have a valid reason, otherwise they will be fined, so the store must still operate,” said some gas station owners in Dien Thai commune, Dien Chau district.
According to the report of the Economic Infrastructure Department of Dien Chau district, the whole district has 84 gas stations, from the beginning of 2023 to now, 5 gas stations have requested to stop operating due to business losses. The district coordinates with the Market Management Team to strengthen the inspection and close supervision of retail gas stations, to prevent disruptions in the supply of gas. Along with that, implement a regime of quick reporting on the situation of the gas supply market in the area before each price adjustment cycle to the District People's Committee.
In Yen Thanh district, there are currently many gas stations that have requested to stop operating due to business losses. "To invest in a retail gas station is not a simple matter, you have to worry about procedures, investment policies, planning, land use conversion, construction permits, connection permits, fire prevention and fighting permits, certificates of eligibility for gas business... not to mention investing billions of dong to build warehouse infrastructure. Because we are not profitable, we have stopped operating" - the owner of a gas station in Van Thanh commune, Yen Thanh added.
Yen Thanh district has 50 gas stations. From 2022 to now, 6 gas stations have requested to stop operating due to business losses and had their business licenses revoked by the Department of Industry and Trade.
Including the whole province, Nghe An has 600 gas stations currently operating normally, from 2021 to now, more than 80 gas stations have stopped operating.
The representative of the Department of Industry and Trade said: Currently, through the actual discount level, it shows that most of the retail gasoline stores in Nghe An are selling at a loss. This causes many difficulties for maintaining the operations of gasoline businesses. The gasoline discount is low, but currently the functional sector has not been able to find a solution to resolve it, because this is an economic contract, an agreement between the supplier and the gasoline store, not to mention that gasoline also depends on foreign sources.
To overcome the current difficulties, the solution is that the distributors and traders of petroleum need to share the benefits harmoniously between the two sides, and in difficult times, the retail stores of petroleum must also share with the distributors and traders of petroleum.
The Department of Industry and Trade is currently continuing to direct key traders and petroleum distributors in the area to proactively balance domestic production and import sources to ensure a continuous supply of petroleum, provide adequate petroleum for franchise traders, general agents, and petroleum retail agents, ensure no shortage, regularly inspect, monitor, and direct to grasp the situation. Review and summarize arising problems related to petroleum supply, management, and operation of petroleum activities; report, advise, and propose to the Provincial People's Committee reasonable and timely direction and operation plans.
According to experts; if the petroleum market is to operate stably and maintain a continuous operating system, including during holidays and Tet, there must be a necessary and sufficient condition, which is to regulate the standard business costs and standard profits for retail businesses at no less than 5-6% of the retail price depending on the time. At the same time, there must be regulations for retail businesses to get goods from many places to ensure the source of goods and have additional remuneration from competition.
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