The state does not regulate gasoline discounts.

How is petroleum products managed?

Ms. Nguyen Thuy Hien - Deputy Director of the Domestic Market Department - Ministry of Industry and Trade informed that currently, the management of petroleum products to ensure supply and stabilize prices is carried out according to the regulations in Decree No. 83/2014/ND-CP, dated September 3, 2014 on petroleum trading and Decrees amending and supplementing Decree 83/2014/ND-CP.

Currently, the management of gasoline prices is carried out on a 7-day cycle, and domestic gasoline prices basically follow world gasoline prices (Photo: Can Dung)

To ensure supply, domestic petroleum factories register and strictly implement production plans, ensuring adequate supply according to contracts signed with key petroleum traders.

Based on the registration of the main traders, the Ministry of Industry and Trade assigns the minimum total source plan (including imported sources and purchases from domestic factories) to the petroleum business centers for implementation. The Ministry of Industry and Trade always monitors and supervises the implementation of the minimum total source of the main traders. In case of unusual fluctuations, the Ministry will coordinate with relevant parties to have solutions to ensure the supply of petroleum for the economy .

Regarding price management, the Ministry of Finance - Ministry of Industry and Trade closely follows the regulations for management. Currently, the management of gasoline prices is carried out on a 7-day cycle, and domestic gasoline prices are basically closely following world gasoline prices.

In addition, every year, periodically or suddenly, the Government and the Prime Minister have Resolutions on solutions to ensure the supply of gasoline for domestic production and consumption. The Minister of Industry and Trade also has Directives to implement the Resolutions of the Government and the Prime Minister to implement solutions to ensure the supply and stabilize the price of gasoline.

Regarding inspection, supervision, system maintenance, and supply assurance, the Ministry of Industry and Trade coordinates with the Department of Industry and Trade in each locality to ensure regular and continuous supply of gasoline.

Ms. Nguyen Thuy Hien added that currently, the petroleum market is operating a system according to the regulations of the Decrees on petroleum trading: Petroleum traders at each stage in the system when participating in the market need to meet the conditions, exercise rights and obligations in each segment in which the enterprise participates.

“Basically, the current system is operating relatively well, ensuring enough gasoline to serve the production, business and consumption activities of people and businesses,” Ms. Nguyen Thuy Hien affirmed.

The state only regulates prices, not the discount rates of businesses!

Sharing about the costs that make up the current gasoline price, Ms. Nguyen Thuy Hien informed that the costs that make up the current retail gasoline price have basically been calculated correctly, fully and updated regularly. Specifically, the input price for calculation is calculated based on 5 days of average world price; the cost of importing goods from abroad to the port is calculated once a month; the standard business cost is calculated every 3 months...

“Currently, the state regulates the retail price of petroleum products, setting ceiling prices for businesses to implement in order to protect the interests of consumers and manage the macro economy. The state does not regulate the discount level in petroleum trading” – Ms. Hien affirmed and added that, in fact, the discount level is the price reduction level of the petroleum selling unit to the petroleum buying unit. The discount level is a factor reflecting the market nature, at the same time, it is a factor that is flexibly adjusted by key traders and distributors to help manage their business activities in accordance with fluctuations in supply and demand, and petroleum prices in the world and domestic markets.

Regarding the draft Decree on petroleum trading being developed by the Ministry of Industry and Trade and submitted to the Government for promulgation, Ms. Nguyen Thuy Hien said that in order to ensure publicity and transparency in management and create social consensus, the Draft Decree replacing the Decrees on petroleum trading that have been developed by the Ministry of Industry and Trade (chairing the Drafting Committee) is consistent with the orientations in the Resolutions of the Politburo on Vietnam's Energy Development Strategy to 2030, with a vision to 2050: Implementing a market mechanism with state management of petroleum trading activities towards the goal of: Contributing to ensuring national energy security; meeting domestic demand.

The draft is based on 05 principles: Building a competitive and transparent environment in the petroleum business sector; inheriting the advantages of the current petroleum business mechanism and adding new regulations suitable to the practical situation of petroleum business; reducing State intervention in petroleum business activities of enterprises; ensuring science, rationality, feasibility, meeting the requirements of practice and state management, harmonizing the interests of the State, people and enterprises; reducing administrative procedures and promoting decentralization and delegation of power.

Source: https://congthuong.vn/ba-nguyen-thuy-hien-pho-vu-truong-vu-thi-truong-trong-nuoc-nha-nuoc-khong-dieu-hanh-chiet-khau-xang-dau-352993.html