The state does not regulate gasoline discounts.

How is the petroleum market regulated?

According to Ms. Nguyen Thuy Hien, Deputy Director of the Domestic Market Department of the Ministry of Industry and Trade , the current management of petroleum products to ensure supply and price stability is carried out in accordance with the regulations in Decree No. 83/2014/ND-CP dated September 3, 2014, on petroleum business and the amending and supplementing decrees to Decree 83/2014/ND-CP.

Currently, fuel prices are regulated every 7 days, and domestic fuel prices basically follow world fuel prices (Photo: Can Dung).

To ensure supply, domestic petroleum refineries register and strictly implement production plans, ensuring sufficient supply according to contracts signed with petroleum wholesalers.

Based on the registrations of key petroleum traders, the Ministry of Industry and Trade assigns a minimum total supply plan (including imports and purchases from domestic refineries) to petroleum traders for implementation. The Ministry of Industry and Trade continuously monitors and supervises the implementation of the minimum total supply by key traders. In case of unusual fluctuations, the Ministry will coordinate with relevant parties to find solutions to ensure the supply of petroleum to the economy .

Regarding price management, the Ministry of Finance and the Ministry of Industry and Trade closely adhere to regulations. Currently, gasoline and diesel prices are managed on a 7-day cycle, and domestic prices are generally aligned with world prices.

In addition, annually, periodically or on an ad hoc basis, the Government and the Prime Minister issue resolutions on solutions to ensure the supply of petroleum products for domestic production and consumption. The Minister of Industry and Trade also issues directives to implement the resolutions of the Government and the Prime Minister on solutions to ensure supply and stabilize petroleum prices.

Regarding inspection, monitoring, system maintenance, and supply assurance, the Ministry of Industry and Trade coordinates with the Departments of Industry and Trade in each locality to ensure the regular and continuous supply of petroleum products.

Ms. Nguyen Thuy Hien further shared that currently, the petroleum market is operating under the regulations of the Decrees on petroleum business: Petroleum traders at each stage of the system, when participating in the market, must meet the conditions and fulfill the rights and obligations in each segment in which the enterprise participates.

"Basically, the current system is operating relatively well, ensuring sufficient fuel to serve the production, business, and consumption activities of people and businesses," Ms. Nguyen Thuy Hien affirmed.

The government only regulates prices, not the discount rates offered by businesses!

Regarding the cost components of current gasoline and diesel prices, Ms. Nguyen Thuy Hien stated that the cost components in current retail gasoline and diesel prices have been calculated accurately, comprehensively, and regularly updated. Specifically, the input price for calculation is based on the average world price over 5 days; the cost of importing goods from abroad to the port is calculated once a month; and the standard business cost is calculated once every 3 months…

“Currently, the state regulates retail prices of petroleum products, setting price ceilings for businesses to implement in order to protect consumer rights and manage the macroeconomy. The state does not regulate the discount rate in the petroleum business,” Ms. Hien affirmed, adding that, in reality, the discount rate is the price reduction offered by the petroleum seller to the petroleum buyer. The discount rate reflects market dynamics and is also a factor that wholesale and distribution traders can flexibly adjust to manage their business operations in accordance with fluctuations in supply and demand and petroleum prices in the world and domestic markets.

Regarding the draft Decree on petroleum business currently being developed by the Ministry of Industry and Trade and submitted to the Government for promulgation, Ms. Nguyen Thuy Hien stated that, to ensure transparency in management and create social consensus, the draft Decree replacing the previous Decrees on petroleum business, which was developed by the Ministry of Industry and Trade (the lead drafting committee), is in line with the orientations in the Politburo's Resolutions on Vietnam's Energy Development Strategy to 2030, with a vision to 2050: Implementing a market mechanism with state management for petroleum business activities to achieve the goal of contributing to national energy security and meeting domestic demand.

The draft regulations are based on five principles: building a competitive and transparent environment in the petroleum business; inheriting the advantages of the current petroleum business mechanism and adding new regulations suitable to the practical situation of petroleum business; reducing state intervention in the petroleum business activities of enterprises; ensuring scientific, rational, feasible, and practical requirements and state management work, harmonizing the interests of the state, people and enterprises; cutting down on administrative procedures and promoting decentralization and delegation of power.

Source: https://congthuong.vn/ba-nguyen-thuy-hien-pho-vu-truong-vu-thi-truong-trong-nuoc-nha-nuoc-khong-dieu-hanh-chiet-khau-xang-dau-352993.html