Editor's note: Tax debts, tax evasion, smuggling, appropriation of the Petroleum Price Stabilization Fund... are the dark corners of many petroleum enterprises. The fact that these enterprises with weak business capacity are allowed to slip through is believed to be largely due to the licensing process.
The series of articles "The hidden corners of the petroleum 'giants'" produced by VietNamNet hopes to contribute more voices to improve and filter the petroleum market, to protect consumer rights, the development of legitimate petroleum businesses, and to ensure national energy security.
Boiling over gasoline discount approaching 0 VND
“We spend money and capital to invest in a gas station, but the discount is uncertain. The discount is determined by the main enterprise, we have no say at all,” said Mr. Van Cong That, KNJ Kim Ngoc Company Limited, at a meeting of gasoline retailers a few days ago.
This sentiment is probably representative of thousands of other gasoline retail agents nationwide. The central enterprise is assigned a standard cost and a standard profit of VND1,350/liter by the State in the retail price calculation formula, but how much reaches the agent is up to the central enterprise.
At the end of 2022, gasoline retail businesses across the country were in turmoil over the situation where discounts were "drowned" by many key businesses to nearly zero VND. This prolonged discount level caused many businesses to suffer heavy losses, selling their gardens and mortgaging their houses to maintain their business. But the situation still did not improve, and they were forced to close. This is part of the reason why "local disruptions" in gasoline supply occurred in some localities.
As for the complaints of petroleum retail businesses at that time, according to the comparison of Mr. Van Tan Phung, Chairman of the Board of Directors of Dong Nai Petroleum Trading Joint Stock Company, they were "like a cry in the desert".
Mr. Phung confided: "Petroleum businesses are under great pressure and suffer many disadvantages. I have a system of petrol stations in Dak Lak that have to hang up for sale signs, I can't stand it anymore. I want to sell but now no one is buying."
Thinking back to those days, Mr. Nguyen Xuan Thang, Director of Hai Au Phat Company Limited ( Lam Dong ), shared: Retail petroleum businesses are always in a state of unstable operations, with heavy losses. The main reason, according to Mr. Thang, is because the regulations in the current decree on petroleum are not beneficial to retail businesses, and are unfair to participants in the petroleum market.
In desperation, hundreds of petrol retail businesses signed collective petitions. Gas station owners from Soc Trang, Lam Dong, Thai Binh, Vinh Phuc, Ha Giang... gathered in Hanoi to "call for help" to the Government, the National Assembly, the Ministry of Industry and Trade...
In early 2023, representatives of petroleum enterprises went to Hanoi to propose that the Vietnam Chamber of Commerce and Industry (VCCI) organize a workshop to provide comments on amendments to draft Decrees 83 and 95 on petroleum trading. On February 14, the workshop took place with the participation of about 300 delegates, including representatives of the Ministry of Industry and Trade, the Ministry of Finance and central ministries, branches, experts and petroleum trading enterprises.
“This is the first time in history that retail businesses have been invited to contribute their opinions to amend the decree. Up to now, there have been thousands of retail businesses nationwide selling gasoline but they have not received due attention from ministries and sectors,” Mr. Thang frankly said.
After that, the discount started to increase. Two weeks later, on February 28, the National Assembly's Economic Committee invited representatives of petroleum retail enterprises to attend the "Session on the Petroleum Market Situation" to provide guidance to stabilize the hot petroleum situation.
It was also the first time these retail business representatives were able to enter the National Assembly building and had the opportunity to open up about their difficulties.
The explanations of retail businesses were listened to by the Government and the National Assembly. The discount situation was partly improved, "harmonizing interests" as assessed by retail businesses of gasoline.
Still unstable
To date, the decree amending the regulations on petroleum trading has not been approved. Issues related to agents purchasing from multiple sources, minimum discount rates, price management mechanisms... are full of conflicting opinions. The question of whether the petroleum market should be left to float according to the market or the State still regulates prices, has caused the debate to continue.
But in general, the contents of the draft decree are still more "skewed" towards key enterprises, compared to retail enterprises.
For example, the draft proposes to adjust prices every 7 days instead of 10 days as at present, and to adjust prices on Thursdays. However, retailers are concerned about the disadvantages for gasoline retail stores. Because after the price adjustment on Thursday, the dealers will give low discounts until the end of the week. Retailers, whether they like it or not, will still have to buy goods to maintain sales. Meanwhile, suppliers will wait until Monday to compare the discounts of the parties to adjust again. At that time, the next adjustment period will be prepared, and the unfavorable "circle" may repeat.
These reasons have prompted businesses to submit applications to the Ministry of Home Affairs, wishing to establish an association so that the voice of an organization representing businesses has legal status according to regulations. From there, fully ensuring the rights and legitimate interests of petroleum retail businesses, contributing to the smooth operation and stable development of the Vietnamese petroleum market.
"We can't invest tens of billions of dong and keep losing money," said Le Van Bau, owner of a gas station in Tan Binh district (HCMC).
“There must be fairness between large and small businesses. Retail gasoline businesses that can survive and make a living can support their workers and ensure the gasoline supply chain for the people,” he said.
“On May 18, the Ministry of Industry and Trade sent a document to the Ministry of Justice for final review of the revised Decree 83 and Decree 95 before submitting them to the Government for approval. After many times of consulting with ministries, branches, associations, and businesses, the Ministry of Industry and Trade submitted the draft revised decrees on petroleum business on July 18,” the Ministry of Industry and Trade said. |
Part 1: The hidden corners of a series of oil and gas giants: Billions in tax debt, boss proposed to be banned from leaving the country
Lesson 2: Hundreds of billions of the Petroleum Price Stabilization Fund were appropriated: Ignoring warnings, risk of losing everything
Lesson 4: Petroleum hub: Not much is needed but potential businesses are needed
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