Petroleum distributors are not allowed to buy and sell from multiple sources, the Ministry of Industry and Trade said 'no prohibition'

Mr. Phan Van Chinh - Head of Domestic Market Department - Photo: C.DUNG

On October 23, at the regular press conference for the third quarter, Mr. Phan Van Chinh - Director of the Domestic Market Department, affirmed that the draft Decree on petroleum business management under construction, which stipulates that distributors do not buy goods from each other, has been carefully considered by the ministry.

Because in practice, through inspection, examination and investigation, the competent authorities recommended to the Ministry of Industry and Trade and the Government that there should be regulations to ensure that petroleum management gradually moves towards the market but must cut out intermediaries to reduce costs. Therefore, the Ministry of Industry and Trade has drafted a Decree with such a consistent orientation.

Conditional business must meet regulations.

Mr. Chinh affirmed: Enterprises are allowed to do anything that is not prohibited by law. However, for conditional business lines such as petroleum, enterprises must fully comply with the conditions.

Accordingly, the decentralized petroleum supply chain includes the source stage; distribution enterprises and retail enterprises.

Previously, when amending the decrees on petroleum business, issuing Decree 80, the Government approved the elimination of intermediaries such as general agents. "Implement management along a straight chain, not a horizontal chain," said Mr. Chinh.

The Decree also stipulates that the conditions for becoming a wholesale trader, a distributor and a retail enterprise are completely different. Therefore, in each segment, enterprises must meet the conditions of that segment, without discrimination.

For distributors, businesses can only buy from the source. Because there are currently 30 sources in the market, it will create competition in the market. However, Mr. Chinh said that this regulation has been reviewed to cut many conditions for this group.

For example, the storage of gasoline will be the responsibility of the main enterprise. The regulations on storage and transportation fleet will be abolished. Along with that, there will be administrative procedure reforms and digitalization. Meanwhile, the main traders will increase many conditions to attach responsibility for creating sources.

Petroleum businesses continuously send out distress calls

Previously, many times, gasoline distribution and retail businesses continuously sent petitions and letters to relevant authorities regarding the amendment of regulations in the decree on gasoline business management.

Most recently, retail businesses sent a letter to the Prime Minister , pointing out that the draft decree has not yet thoroughly resolved three basic issues. These are the restriction on purchasing from three sources; the failure to ensure business costs and profits, leading to low discounts; and the failure to receive and deliver domestic gasoline and oil at the ^150C standard to reduce loss.

A group of petroleum distributors, agents and retailers have also sent a petition to the Government. In particular, businesses believe that the regulation that distributors are only required to buy from a single source, the main trader, and are not allowed to trade with each other is discriminatory and restricts the business rights of businesses.

"Regulating the restriction of business rights is not within the authority of the decree. The decree restricting business rights by attaching those rights to unreasonable conditions is illegal. In addition, the regulation of business rights of enterprises according to the approach of the draft decree leads to inequality and discrimination" - the enterprise proposed.

Source: https://tuoitre.vn/thuong-nhan-phan-phoi-xang-dau-khong-duoc-mua-ban-nhieu-nguon-bo-cong-thuong-noi-khong-cam-20241023183624423.htm