The fuel discount has increased to 2,600 VND/liter.

Positive signals from negotiations in the Middle East, lower fuel prices, and reduced risk of supply shortages have led to a resurgence in discounts offered by major distributors.

Current regulations on the petroleum business do not specify a discount rate. (Illustrative image)

In business, a discount is a price reduction offered by a company to customers who purchase goods in bulk.

According to information from the Department of Domestic Market Management and Development ( Ministry of Industry and Trade ), the discount rate is adjusted flexibly by gasoline and diesel businesses, reflecting market dynamics and depending on fluctuations in supply and demand, and prices in the world and domestic markets.

Current legal regulations on petroleum business in Vietnam do not specify discount rates, but rather create an environment for management and operation, and regulate the ceiling price of retail petroleum products to protect consumer rights and manage the macroeconomic economy .

The level of discount depends on the business relationship between the companies and the business contracts between them.

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Government Decree 80/2023/ND-CP, amending several articles of Decree 95/2021/ND-CP and Decree 83/2014/ND-CP on petroleum business, has allowed petroleum retail agents to sign agency contracts with up to three primary petroleum distributors or wholesalers, thus opening up more supply source options for petroleum retail agents.

Retail gasoline dealers will select suppliers offering reasonable discounts.

The Department of Domestic Market Management and Development also stated that, over the past two weeks, the global oil market has experienced fluctuations due to conflicts in the Middle East, causing world oil prices to rise and posing a risk of supply disruptions. Some major distributors have reduced fuel discounts for dealers to as low as 500 VND, or even 100-200 VND per liter.

However, by June 25th, due to positive signals from negotiations in the Middle East, gasoline prices had decreased, the risk of supply shortages had also diminished, and therefore the discounts offered by wholesale businesses had increased again. Gasoline discounts offered by some wholesale businesses on June 30th.

The Department of Domestic Market Management and Development affirms that gasoline and diesel retailers and dealers participating in the market must accept market rules and be subject to market regulation. Therefore, they need to have their own business plans to respond when the market fluctuates.

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Regarding the low fuel discounts, the Ministry of Industry and Trade stated that it follows "market principles."(Dan Tri Newspaper) - Many gasoline and diesel retailers are complaining about losses due to low discount rates in recent times. The Ministry of Industry and Trade stated that businesses need to accept the laws and regulations of the market and proactively plan their business.

For example, when world oil prices are low and supply is abundant, wholesalers and distributors can offer high discounts to retailers . However, when world oil prices rise or are forecast to rise, and supply becomes scarcer, retailers may have to accept lower discounts, possibly even negative discounts, but still have to import goods to maintain business operations, compensating for the high discounts they received.

Source: https://hanoimoi.vn/muc-chiet-khau-xang-dau-da-tang-toi-2-600-dong-lit-707766.html