Ministry of Industry and Trade: Fuel supply in March is guaranteed.

According to the Ministry of Industry and Trade, domestic gasoline and diesel supply in March was "basically ensured," thanks to a combination of reserves, domestic production, and imports.

On March 6th, the Department of Domestic Market Management and Development ( Ministry of Industry and Trade ) announced that key traders are continuing to import refined petroleum products to supply the market, despite increased import and transportation costs.

The two major domestic refineries, Dung Quat and Nghi Son, continue to operate normally, ensuring the supply of petroleum products to the distribution system according to signed contracts until the end of March.

Specifically, according to a report by the Vietnam National Energy Industry Corporation (PVN), crude oil production currently stands at approximately 180,000 barrels per day. Of this, about 150,000 barrels per day are supplied to the Dung Quat Refinery. This refinery can operate at 118% capacity until the end of April and ensure the supply of petroleum products according to contracts signed with key traders.

Similarly, the Nghi Son refinery maintains stability, ensuring a steady supply of raw materials for its production plan in the coming period.

"With the regulated circulating reserves at businesses, the supply of petroleum products to the market in March is basically guaranteed," according to the Ministry of Industry and Trade.

A gas station attendant pumps fuel for a customer. Photo: DMS

The domestic oil market has experienced significant fluctuations following the escalation of conflict in the Middle East last weekend. Currently, Qatar has halted liquefied natural gas production, Israel has temporarily closed its gas fields, while Saudi Arabia has shut down its largest refinery due to the fighting. Shipping through the Strait of Hormuz – the "choke point" of the world's oil flow – is almost paralyzed, with more than 10% of the global container ship fleet stranded there.

At the price adjustment on March 5th, each liter of gasoline increased by approximately 2,000 VND, while kerosene prices rose by as much as 7,132 VND. After this adjustment, the price of RON 95 gasoline exceeded 22,000 VND per liter, reaching its highest level since March 2022. Kerosene also recorded its first increase of over 7,000 VND since 2019, reaching 26,600 VND.

During this price adjustment period, the inter-ministerial committee has not yet used the fuel price stabilization fund to "curb" gasoline prices. Explaining this, Ms. Nguyen Thuy Hien - Deputy Director of the Domestic Market Management and Development Department (Ministry of Industry and Trade) said that the use of the stabilization fund must be assessed for its impact according to the Price Law, so it has not been activated immediately even though the fund still has a surplus.

The slow supply of fuel has led to gas stations selling fuel in small quantities in many localities. Some gas stations in Hanoi , Ho Chi Minh City, and An Giang have put up signs indicating they are out of stock or limiting the amount they can sell to customers per purchase.

Ms. Hien noted that the fact that some retail gasoline stations are selling fuel intermittently and displaying "out of gas" signs is mainly due to the expectation of price increases as world oil prices fluctuate sharply. A representative from the Ministry of Industry and Trade affirmed that the regulatory agency is closely monitoring the market, seeking additional import sources, and ensuring the supply of raw materials for the two domestic refineries – which supply approximately 70-80% of domestic gasoline and diesel. In addition, businesses have sufficient inventory to meet the 20-day requirement.

While immediate supply is assured, the Ministry of Industry and Trade acknowledges that if the conflict in the Middle East continues into April, the global energy market will face greater volatility. In light of this situation, the government has established a task force to ensure energy security, remove obstacles, and facilitate the production and import of petroleum products.

The Ministry of Industry and Trade has instructed petroleum businesses to maintain a stable supply to the distribution system, avoiding hoarding or selling in moderation while waiting for price increases. The regulatory agency recommends that people conserve energy, prioritizing the use of public transportation, electric vehicles, and biofuels. "When the State, businesses, and the people share and use energy efficiently, it will contribute to stabilizing the domestic petroleum market and ensuring energy security," the Ministry of Industry and Trade stated.

In a document dated March 6th, the Ministry requested localities to closely monitor the supply and demand, and prices of gasoline, diesel, and gas in their areas to take timely management measures. Market management forces must increase supervision and detect unusual signs such as shortages, supply disruptions, hoarding, or unreasonable price increases to handle them strictly. The Ministry also requested local authorities to inspect retail gasoline stations to detect cases of closing, reducing operating hours, or opening but not selling fuel for unjustified reasons.

Currently, domestic refineries meet about 70-80% of market demand, with the remainder being imported. In fact, when geopolitical instability and conflicts occur in the Middle East, the demand for domestic crude oil for production increases, leading to fierce competition in international tenders for the purchase of Vietnamese crude oil.

To reduce the risk of raw material shortages, Binh Son Refining and Petrochemical Company - the operator of the Dung Quat refinery - has proposed prioritizing the use of domestic crude oil and limiting exports of this commodity during high-risk periods to ensure energy security.

Source: https://baohatinh.vn/bo-cong-thuong-nguon-cung-xang-dau-thang-3-duoc-bao-dam-post306979.html