Closely monitor the total minimum source of petroleum traders

However, in addition to the efforts of large enterprises to create sources, the solution of management agencies to strengthen close supervision of the implementation of the minimum total source of key traders is very important to ensure supply for the domestic market in the face of forecasts of unpredictable fluctuations in the world market.

Maximum supply from two domestic refineries

Petrolimex actively coordinates closely with Dung Quat Oil Refinery (Quang Ngai) and Nghi Son Oil Refinery (Thanh Hoa) to maximize purchases under signed term contracts (sterm contracts) and the ability to sell under spot contracts of the factories. In addition, Petrolimex also regularly exchanges with international petroleum suppliers to maintain customer relationships and share information on developments in the world petroleum market, while continuing to seek new suppliers.

Responding to reporters from Vietnam News Agency, Chairman of PVOIL Cao Hoai Duong said that with the responsibility of being the leading petroleum trader with the second largest market share in the country, based on the total minimum source delivered annually by the Ministry of Industry and Trade and the business needs of the system, PVOIL is always proactive and has a plan to ensure early supply of goods through contracts with two domestic oil refineries (Dung Quat and Nghi Son) and petroleum import contracts.

Currently, PVOIL has signed contracts to purchase goods from two domestic refineries, preparing raw materials for production and blending activities as well as signing purchase contracts with import suppliers to ensure sufficient supply for PVOIL's system in the fourth quarter of 2024 and the first quarter of 2025. PVOIL also always maintains stable inventory levels, ready to meet increased market demand (if any) and always ensures minimum inventory according to State regulations.

Faced with the forecast of increasingly fierce conflicts in the Middle East, potentially disrupting the supply chain, causing fluctuations in prices and fuel supply as well as a sharp increase in transportation costs, PVOIL focuses on consuming goods from Dung Quat refinery and Nghi Son refinery, as well as the company's own blending production sources. PVOIL only imports when domestic sources are not enough to meet demand. Currently, the purchase source from these two domestic refineries accounts for more than 80% of PVOIL's total gasoline supply, the blending production source is 5-10% and the imported source only accounts for 10-15%, said PVOIL Chairman Cao Hoai Duong.

However, in the face of the above complicated developments, PVOIL has prepared proactive solutions to ensure the supply of goods for the system such as: Regularly and closely monitoring market developments and State management; closely coordinating with Binh Son Refining Joint Stock Company (BSR) - the unit managing and operating Dung Quat oil refinery and Nghi Son Oil Refinery Product Distribution Branch (PVNDB) - a member unit of Vietnam Oil and Gas Group in dispatching activities, ensuring the supply of goods from domestic oil refineries to PVOIL's warehouses; strengthening production and blending activities.

Petrolimex representative also said that the Group has directed its member units of waterway and road transport to make the most of available capacity to be proactive in sourcing; at the same time, build flexible response scenarios in case of increased domestic fuel consumption demand. In addition, Petrolimex continues to improve the quality of analysis and forecasting based on world oil and gas developments affected by geopolitical factors; closely follow domestic oil and gas consumption demand through macroeconomic information, experts' comments on Vietnam's economy in the fourth quarter of 2024 and forecasts for the first quarter of 2025.

Monitor the implementation of minimum source and inventory

According to data from the Domestic Market Department (Ministry of Industry and Trade), the total minimum source of gasoline and oil in 2024 assigned by the Ministry to 36 key gasoline and oil traders is a total of 28.43 million m3/ton of all types of gasoline and oil.

However, based on the recent implementation of the minimum total source of key traders, experts believe that, in order to ensure gasoline supply for the domestic market, in addition to the efforts to create adequate sources of large enterprises such as Petrolimex and PVOIL, state management agencies need to strengthen inspection and closely monitor the implementation of the minimum total source of other key traders, especially those traders whose implementation is lower than the allocated total source.

According to economic expert Nguyen Minh Phong, the Ministry of Industry and Trade has assigned quotas for petroleum imports to key enterprises. Once assigned, the Ministry of Industry and Trade must check the implementation of petroleum import quotas by key traders, only then can the supply for the market be guaranteed, even when fluctuations occur.

In addition, the two domestic oil refineries, Dung Quat and Nghi Son, need to prepare and ensure adequate input materials, as well as have solutions for the oil refineries to operate stably and continuously at optimal capacity, ensuring sufficient supply for petroleum terminals according to signed contracts.

Petrolimex representative also said that the Ministry of Industry and Trade needs to direct key traders in the petroleum business to ensure sufficient inventory days according to the provisions of Decree No. 95/2021/ND-CP dated November 1, 2021, closely following the minimum total source assigned by the Ministry of Industry and Trade... ensuring that key traders fully supply petroleum for their own distribution system.

At the same time, strengthening inspection and examination to promptly detect cases of sales restrictions (including wholesale traders, distributors, agents and retail franchisees of gasoline) is an important solution to ensure the rights and responsibilities of businesses in ensuring market stability, a Petrolimex representative pointed out.

PVOIL Chairman Cao Hoai Duong also said that, in general, the demand for gasoline for people's travel as well as for production and business activities in the last months of 2024 and the first quarter of 2025 will not have many sudden changes, demand may increase locally at some times such as New Year's Eve, Lunar New Year... However, in the current complicated context, some gasoline retailers often increase purchases, hoarding, speculation... leading to a sudden increase in demand.

Meanwhile, Petrolimex representative forecasted that based on information on the macro economy and annual statistics, Petrolimex believes that gasoline consumption output in the fourth quarter of 2024 and the first quarter of 2025 will often be higher than the annual average, but the increase will not be significant.

Source: https://doanhnghiepvn.vn/kinh-te/giam-sat-chat-tong-nguon-toi-thieu-cua-cac-thuong-nhan-dau-moi-xang-dau/20241020092128725