Consider transferring the Petroleum Price Stabilization Fund to the State budget

Petroleum enterprises may not be allowed to hold the Price Stabilization Fund. Photo: Phan Anh

This is a new point in the third draft of the Decree on petroleum business that the Ministry of Industry and Trade sent to the Ministry of Justice for appraisal. In the draft, the balance of this fund is expected to not be left at the main petroleum business enterprise as it is now, but will be held by the State. The use of the fund is in accordance with the provisions of the 2023 Law on Prices (effective from July 1).

The Ministry of Finance will guide businesses to transfer and pay the balance of the Petroleum Stabilization Fund to the budget, according to the draft decree.

Speaking with Lao Dong, Ms. Nguyen Thuy Hien - Deputy Director of the Domestic Market Department ( Ministry of Industry and Trade ) - said that the Petroleum Price Stabilization Fund in the current draft Decree is implemented according to the provisions of the 2023 Price Law.

The Law on Prices stipulates five stabilization measures, of which the fifth measure is to use the Price Stabilization Fund for goods for which a fund has been established. Ministries and sectors develop price stabilization plans and submit them to the Ministry of Finance for synthesis and submission to the Government for approval in principle. After the policy is approved, ministries and sectors organize implementation. Stabilization measures are time-limited. The allocation or disbursement of this fund must comply with the Law on Prices.

The Petroleum Price Stabilization Fund was established under Decree 84/2009 of the Government on petroleum trading and subsequent amended decrees (Decree 83 and Decree 95). This fund is not included in the state budget balance, and is self-managed by 36 petroleum enterprises in a separate bank account.

The conclusion of the Government Inspectorate announced at the end of 2023 showed that 7 petroleum sources misused the Price Stabilization Fund, did not transfer money to the fund account but left it in the enterprise's payment account, the amount was 7,927 billion VND.

Some business owners, such as Xuyen Viet Oil, have misappropriated and misused this fund. The Ministry of Public Security, when giving comments, requested the Ministry of Industry and Trade and the Ministry of Finance to carefully evaluate the role and effect of this fund in stabilizing gasoline prices.

Previously, many businesses and experts proposed to abolish this fund and replace it with other management tools such as taxes and fees, and national petroleum reserves. The Vietnam Petroleum Association proposed assigning a state agency to directly manage it. This is to overcome the shortcomings in the use of the fund as in the past, and to make information transparent.

Source: https://laodong.vn/thi-truong/xem-xet-dua-quy-binh-on-gia-xang-dau-ve-ngan-sach-nha-nuoc-1365608.ldo