Petroleum businesses need to have their own business plans to respond when the market fluctuates - Photo: Archive
The Department of Domestic Market Management and Development ( Ministry of Industry and Trade ) has just provided information on the situation of discounts of petroleum businesses increasing and decreasing with strong amplitude in recent times due to the impact of the conflict in the Middle East.
The discount has increased from low to more than 2,500 VND.
According to this agency, in the past two weeks, the world oil market has fluctuated due to conflicts in the Middle East, causing world oil prices to increase, posing a risk of supply disruption.
This led to a time when some key traders reduced the discount on gasoline for agents to 500 VND, or even 100 - 200 VND. However, by June 25, due to positive signals from negotiations in the Middle East, gasoline prices had decreased, reducing the risk of supply shortage, so the discounts of key businesses increased again.
Specifically, this ministry cited the gasoline discount of some key enterprises on June 30 for Phuc Lam Company at 2,600 VND/liter; Military Petroleum Corporation at 1,800 - 2,300 VND/liter (depending on the region); Vietnam Oil Corporation at 2,300 - 2,400 VND/liter; Saigon Petro: gasoline 1,600 VND, oil 1,400 VND; Petrolimex : 1,700 - 1,900 VND (depending on the product).
According to the petroleum management agency, petroleum agents and retail stores when participating in business in the market need to accept the rules of the market, be subject to market regulation (supply, demand, price), so they need to have their own business plan to respond when the market fluctuates.
For example, when world oil prices are low and supply is abundant, wholesale and distribution companies can offer high discounts to retailers. However, when world oil prices increase or are forecast to increase, supply becomes scarce, retailers may have to accept low discounts, or even negative discounts, but still have to import goods to maintain business operations, but will be compensated when enjoying high discounts.
However, many petroleum businesses, especially agents and retailers, believe that there are shortcomings arising in the petroleum management mechanism, causing petroleum prices to not follow the market, especially when prices fluctuate, leading to great price risks.
For example, a retail trader in Ho Chi Minh City said that when gasoline prices increased early last week, due to concerns that prices would continue to rise, businesses agreed to buy goods at low discounts, only from 100 - 300 VND/liter, sometimes even at 0 VND to reserve goods and ensure supply.
"The output of goods purchased by my unit at the time of low discount is still available, so even though yesterday the discount was up to 2,500 VND, we still cannot import many goods, and the business is still operating at a loss. The price management cycle is one week, while the price fluctuations are too large and reverse quickly, so it is very difficult for businesses to adjust the import cycle accordingly" - this trader shared.
No discount regulations, decided by the market
According to the Ministry of Industry and Trade, current legal regulations on petroleum trading in Vietnam do not stipulate discount rates. The State only creates the environment, manages, operates and regulates the ceiling price of retail gasoline products, but does not regulate the discount rate. Therefore, the high or low discount depends on the business relationship and contract of the enterprise.
Decree 80 of the Government on petroleum business has allowed petroleum retail agents to sign contracts to act as agents for three main traders or distributors in order to have more choices of goods sources with reasonable discounts.
In addition, current regulations on petroleum trading are gradually following the market mechanism and moving towards applying petroleum prices completely according to the market mechanism.
However, businesses said that the circular only guides agents to sign contracts with three new key traders, while they have already taken a stable source of goods.
To register to receive goods from three traders, businesses also have to go through complicated procedures, affecting business operations. Meanwhile, the price fluctuations are constantly changing, difficult to predict with a large increase and decrease amplitude, causing businesses to "run out of breath" and face great price risks.
Source: https://tuoitre.vn/chiet-khau-tu-100-2-500-dong-bo-cong-thuong-noi-doanh-nghiep-xang-dau-chap-nhan-quy-luat-thi-truong-20250701175957286.htm
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