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Petroleum retail businesses again 'call for help' from the Prime Minister

VnExpressVnExpress27/10/2023


Continuously receiving a discount of 0 VND despite the regulation of dividing according to the norm, gasoline retail businesses have called for help from the Prime Minister, requesting the Ministry of Finance to clearly divide the ratio.

The above information was sent by Mr. Giang Chan Tay - Director of Boi Ngoc One Member Co., Ltd. ( Tra Vinh ) - representing hundreds of petroleum retail enterprises - to Prime Minister Pham Minh Chinh and related ministries and branches on the morning of October 27.

In the petition, Mr. Tay said that the retail business is currently in a state of unstable operations, losses and financial difficulties due to frequent zero-dong discounts.

Decree 95 and Circular 104 of the Ministry of Finance have stipulated the standard business costs in the basic price of petroleum facilities, including both wholesale and retail. However, according to Mr. Tay, in reality, the distribution is not in accordance with regulations, and retail businesses are still being oppressed.

The loophole is that the Ministry of Finance's regulations do not clearly state the cost sharing ratio in the Decree and Circular. "Retail businesses receiving a discount of 0 VND means they are not entitled to any share. So where is this standard cost and who has enjoyed all of it?", Mr. Tay said.

Gas station staff on Nguyen Thi Dinh Street, Thu Duc City. Photo: Thanh Tung

Gas station staff on Nguyen Thi Dinh Street, Thu Duc City. Photo: Thanh Tung

He said that recently, businesses have repeatedly petitioned the Ministry of Finance about this issue but have not received any response. Previously, Deputy Prime Minister Le Minh Khai asked the Ministry of Industry and Trade and the Ministry of Finance to respond to businesses about this cost. However, by April 17, the deadline had expired, the ministries had still not responded and the Government had not taken any intervention measures.

According to businesses, over the past year, when trading in gasoline, they had to pay for electricity, water, salaries, losses, repairs, interest... This is quite unfair if retail businesses do not receive discounts.

Therefore, Mr. Tay believes that if Circular 104 of the Ministry of Finance is not adjusted in parallel with the revised Decree on petroleum, by clearly dividing the standard costs according to the proportions at each stage, the effectiveness of the decree amendment will be insignificant and instability in the petroleum market will continue. Current regulations create loopholes for key enterprises to oppress retail enterprises, creating unnecessary conflicts of interest in the petroleum business system...

Previously, on October 18, the Government Office also issued an official dispatch conveying Deputy Prime Minister Le Minh Khai’s direction on reviewing and adjusting the standard cost item in the base price of gasoline and oil. The Ministry of Industry and Trade was also asked to quickly complete the draft of the revised Decree.

Accordingly, on October 20, the Ministry of Industry and Trade re-submitted a plan to amend and supplement a number of articles of Decree 95 and 83 on petroleum trading. In addition to a series of newly added policies, the draft also proposed a review period for calculating the costs of bringing petroleum back to the country, to ports, and premium from domestic production sources from 6 months to 3 months. The purpose is to update prices and costs for businesses in a more timely manner.

Last year, many petroleum retail businesses also continuously sent "rescue" petitions to the Prime Minister and relevant ministries and branches to comment on and amend Decree 83/2014 and Decree 95/2021 on petroleum trading. In particular, businesses requested the Ministry of Finance and the Ministry of Industry and Trade to provide specific levels of standard costs and minimum discounts for retail businesses.

Thi Ha



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