Petrolimex, BSR join hands to sell Dung Quat Refinery’s products

A positive sign is the decrease of the price of food and foodstuff by 10-20 percent after the Lunar New Year Festival (Tet). According to a report from the Ministry of Finance, Vietnamese goods accounted for 85-95 percent of the market share during Tet, which created favorouble conditions for the management agencies to control inflation from the first quarter of this year, under the Government’s guidance. However, many sensitive products are facing price hikes. Petrol is a typical case in point. The question is how petrol price will increase and whether the price stabilisation fund will have any effect. According to Vuong Thai Dung, Deputy General Director of the Vietnam National Petroleum Corporation (Petrolimex) which holds nearly 70 percent of the domestic petrol market, admitted that many petrol stations have stopped selling as they wait for the adjustment for price increase. On February 9, the world price of RON92 petrol was priced at US$105.2 per barrel while petrol prices in Vietnam are lower than those in the region by VND 4,000-5,000 per litre. When and how petrol prices will increase, depends on the functional ministries and sectors. Based on the analysis of the current supply and demand, the Ministry of Industry and Trade and Petrolimex confirmed that there is a sufficient supply of petrol for domestic consumption. Last year, the country consumed a total of 12 million tonnes of petrol. Given this data, how can we stabilise petrol prices? The Head of the Price Management Department under the Ministry of…... [read more]

At a recent online conference held by the Ministry of Industry and Trade (MoIT), many petrol wholesalers across the country mentioned a host of difficulties in petrol business management. The Director of the Ba Ria-Vung Tau Department of Industry and Trade, Tran Thi Huong said during the time of adjusting petrol prices, several petrol stations had to close, leading to a drop of 70 percent in petrol supply. According to the Deputy Director of the Kien Giang Department of Industry and Trade, Lam Thanh Hung, relevant agencies have taken strong measures to control the cross-border petrol smuggling situation by fixing the time for buying petrol from 6 am to 6 pm and limiting sales of petrol after hours. To deal with the false scarcity of petrol in recent times, Hung proposed adopting a flexible policy to control petrol prices and prevent speculators driving the prices up. Meanwhile, Huong underlined the need for MoIT to ask petrol businesses to ensure a sufficient supply in order to stabilise the domestic petrol market. The Minister of Industry and Trade, Vu Huy Hoang, admitted that after two times of adjusting prices, petrol businesses can recoup losses or make a small profit. However, the petrol prices in some border provinces are still VND 2,000-3,000 per liter lower than in other areas, which has caused cross-border petrol smuggling. Wholesalers operating at a loss The Deputy General Director of the Vietnam National Oil and Gas Group (PVN), Vu Quang Nam, said that by the end of March…... [read more]

Businesses operate at a loss According to a representative of the Vietnam National Petroleum Corporation (Petrolimex) – the country’s largest oil and gas import-export business, lower crude oil prices normally result in a fall in the prices of refined oil. However, due to a number of reasons concerning processing, distribution and a sharp fall in supply, the global oil and petrol market does not closely correspond to the downward or upward trends of crude oil prices. In addition, several countries do not export their oil-based products, resulting in a shortfall in supply which drives prices up. Nguyen Tien Thoa, head of the Price Management Department under the Ministry of Finance, told the media on February 16 that any fluctuations in the global petrol market will affect domestic retail petrol prices. The Ministry of Finance recently slashed the import tax on petrol by 10 percent down to 25 percent. However, petrol businesses complain that they are still suffering losses. They explain that over the past three weeks, the global petrol prices have increased by 38 percent and they have lost VND500 on every litre of petrol sold. Retail prices to go up again? Following the Ministry of Finance’s decision to slash the import tax on petrol, consumers hope to enjoy lower retail prices. However, businesses are planning to increase prices to ensure that they can make a profit, pay off debts and reinvest in projects. According to businesses, they have to pay various taxes and fees levied on every litre of…... [read more]

Retail petrol prices were adjusted to increase by VND900 per litre on August 1 and by VND1,100 per litre on August 13. Oil prices were also raised by VND500 - 800 per litre. Although petroleum businesses reason that the rise is due to high import prices, such adjustments within 12 days have raised public concerns about the market-based pricing management mechanism. Consumers, including production enterprises, complain that the Ministry of Finance did not observe its rule of allowing petrol companies to raise or lower their retail prices once within a 30-day time frame. However, the August 13 adjustment was made in just 12 days. They say they fall victim to petroleum businesses’ unhealthy market practice of rapid increase and slight decrease in the prices. In addition, consumers do not benefit from each adjustment as there is no genuine competition between petroleum companies that increase or lower the prices at the same level no matter how big or small they are. Economic expert Nguyen Thi Hien says the 10-day time frame is not too short, as other countries in the world even change petroleum prices on a daily basis. However, businesses should be allowed to adjust retail prices of their products according to the market law of supply and demand in the future, suggests Hien. Only then, she says, can petroleum companies compete with each other and consumers select petrol stations at a competitive price. With its biggest share of all the National Petroleum Corporation (Petrolimex) is said to manipulate the…... [read more]

domestic retail price of petroleum fell by VND200 to touch VND15,698 per litre on July 5. — VNA/VNS Photo HA NOI (Biz Hub) — The domestic retail price of petroleum fell by VND200 to touch VND15,698 per litre on July 5, the Ministry of Industry and Trade (MOIT) said. The price of E5 RON 92 biofuel also dipped by VND200 to touch VND15,447 per litre. The prices of diesel and kerosene remained unchanged at VND12,298 and VND10,667 per litre respectively. The price of mazut went up VND260 to VND9,001 per kilogramme. The MOIT and the Ministry of Finance (MoF) also decided to reduce the use of the price stabilisation fund for petroleum to VND426 per litre. Usage of the fund for E5 RON 92 biofuel remained at VND467 per litre, while diesel was at VND472 per litre; kerosene, VND669 per litre; and mazut, VND151 per kilogramme. In the latest adjustment on June 20, the prices of petroleum fell by VND341 to VND16,168 per litre, while that of E5 RON 92 biofuel also fell by VND336 to VND15,647 per litre. Petrol prices in Singapore, Viet Nam's main petroleum exporter, have seen a downward trend after the latest adjustment. Statistics from the MOIT showed that by the beginning of July, the imported petroleum price was $53.41 per barrel, a reduction of $3 per barrel from June 20. Imported petrol tax drops The MoF on Monday announced the new calculation of petroleum import tax based on a weighted average of the tariffs as…... [read more]

VGP – Some foreign enterprises will be permitted to distribute petrol in Viet Nam when they invest in oil refinery projects in the Southeast Asian nation. Accordingly, Japanese oil producer Idemitsu Kosan which invested in the Nghi Son refinery project in the northern province of Thanh Hoa with Petrol Viet Nam will be able to distribute petro from 2017. In addition, the Viet Nam National Petroleum Group (Petrolimex) inked a strategic deal with JX Nippon Oil and Energy on the US$8 billion Nam Van Phong oil refinery project. Foreign petrol distributors have to meet criteria as stipulated at Decree 83/2014/ND-CP, dated September 3, 2014 on petrol and oil trading. So far, the domestic petrol market has 23 traders and 69 distributors, of which Petrolimex holds the largest market share. Under Viet Nam’s commitments to internationally-signed trade packs, the domestic petrol retail market will be opened for foreign players from 2018-2019. Professor Dang Dinh Dao, former Director of the Institute for Economic Research and Development, National Economics University in Ha Noi expected that the participation of foreign enterprises would make the domestic market become more competitive and transparent. However, Mr. Dao also proposed Viet Nam improve management measures to tighten control of foreign enterprises for fear of tax invasion and frauds./. By Kim Loan... [read more]

The petrol management of the Ministry of Industry and Trade (MoIT) and Ministry of Finance has seen positive results. This has been voted as one of 10 outstanding events of the two ministries. MoIT's Deputy Minister Do Thang Hai talked to the media about the issue. * On September 3th 2014, the Government promulgated the Decree No 83/2014/ND-CP on petrol trading. The decree took effect on November 1, 2014. The domestic petrol market has seen positive changes after one year of implementation of the decree. What are your comments on the issue? The local petrol market has seen positive changes as trading has been basically operated under the market mechanism under the State management. Petrol traders have had more freedom in their trading while following legal regulations. Retail petrol prices have been adjusted flexibly to reflect fluctuations in the world market. The adjustment has facilitated businesses and people's lives. With the adjustment of every fortnight, domestic retail petrol prices have been followed closely by the market and State management. In 2015, there were 23 adjustments which were suitable with the country's socio-economic development. There were more decreases than increases, thus reducing input costs for businesses and production and improving people's living conditions. Specifically, petrol prices had 12 decreases and six increases while five times they were unchanged. The General Statistics Office said that the reduction of petrol prices by 25 percent last year made prices of housing and building materials as well as transport lower than the previous year. These…... [read more]

The petrol management of the Ministry of Industry and Trade (MoIT) and Ministry of Finance has seen positive results. This has been voted as one of 10 outstanding events of the two ministries. MoIT's deputy minister Do Thang Hai talked to the media about the issue. On September 3th 2014, the Government promulgated the Decree No 83/2014/ND-CP on petrol trading. The decree took effect on November 1, 2014. The domestic petrol market has seen positive changes after one year of implementation of the decree. What are your comments on the issue? The local petrol market has seen positive changes as trading has been basically operated under the market mechanism under the State management. Petrol traders have had more freedom in their trading while following legal regulations. Retail petrol prices have been adjusted flexibly to reflect fluctuations in the world market. The adjustment has facilitated businesses and people's lives. With the adjustment of every fortnight, domestic retail petrol prices have been followed closely by the market and State management. In 2015, there were 23 adjustments which were suitable with the country's socio-economic development. There were more decreases than increases, thus reducing input costs for businesses and production and improving people's living conditions. Specifically, petrol prices had 12 decreases and six increases while five times they were unchanged. The General Statistics Office said that the reduction of petrol prices by 25 per cent last year made prices of housing and building materials as well as transport lower than the previous year. These…... [read more]

VietNamNet Bridge - The domestic petrol market is expected to become more competitive with many different price levels for consumers to choose under a new decree, Phan The Rue, chair of the Vietnam Petroleum Association, has said. Rue said Decree 83, to take effect on November 1, will provide a legal framework for the petrol market to operate in accordance with market rules. Under current regulations, sales agents, general agents and filling stations operate in the market. The new decree will admit merchants and franchisees as well. Merchants will buy petrol products from supply sources and determine the selling prices themselves. An analyst commented that once the Decree 83 takes effect, existing sales agents and general agents would shift to becoming merchants to enjoy the right of determining the selling prices. Under current regulations, import and distribution enterprises can raise or lower selling prices by no more than 7 percent. With the current price at VND24,000 per liter, they can adjust the selling price a maximum of VND1,600 per liter, an increase high enough to shock the economy. But the situation will be different once the new decree takes effect. Enterprises will be allowed to raise the price by no more than 3 percent for each adjustment, while the next adjustment must be made 15 days after the previous one. The 3 percent price increase, or VND700-750 per liter, is viewed as "bearable" for the economy and consumers. In order to keep petrol prices stable, distributors have asked the government…... [read more]

The adjustment in the selling price of petroleum has stirred a controversy, especially in its transparency though it has become more flexible.Tran Van Thinh, General Director of the Viet Nam National Petroleum Group (Petrolimex) told Vietnam News Agency about the publicity and transparency in petrol trading. What is the basis for Petrolimex to increase petroleum prices this year? Petrol trading requires tight management controls by the Government. The increase of petroleum selling prices is based on the Government's Decree No 84/2009/ND-CP dated October 15, 2009 where traders can adjust petrol prices up to 7 per cent in line with the world prices and other changes. The adjustment has been decided by the ministries of Industry and Trade and Finance since the first quarter of 2010. Petrolimex has followed the instruction from the two ministries to increase petrol prices five times, diesel four times, oil four times and mazut three times while reducing prices of diesel (five times), oil (three times) and mazut (four times). In addition, the two ministries also use the petrol price stabilisation fund. The price hike on July 7 was because the basic petroleum price was higher than the selling price in Viet Nam. Several people said the local petrol price tended to increase even when the global price was dropping. What are your comments? I want to emphasise that petrol adjustment was decided by the two ministries. The management follows the Decree 84 which suits the domestic market as well as ensuring all targets. Statistics showed…... [read more]




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