What are regulations on compulsory reserves of petrol and oil? Are retail petrol and oil stores required to reserve petrol and oil in Vietnam?
What are regulations on compulsory reserves of petrol and oil in Vietnam?
Pursuant to the provisions of Clause 1, Article 30 of Decree 83/2014/ND-CP, the entities required to hold compulsory petrol and oil reserves are key traders.
Article 31 of Decree 83/2014/ND-CP (as amended and supplemented by Clause 23, Article 1 of Decree 95/2021/ND-CP) provides regulations regarding compulsory petrol and oil reserves as follows:
Compulsory petrol and oil reserves
1. From the effective date of this Decree, key traders in petrol and oil trading and key traders in petrol and oil production who organize a petrol and oil distribution system must ensure a stable compulsory petrol and oil reserve level of at least twenty (20) days of supply, calculated based on the average daily domestic consumption of the previous year, including the structure of types; including reserves for national energy security and compulsory circulation reserves.
2. From the effective date of this Decree, petrol and oil distributors must ensure a stable compulsory petrol and oil reserve level of at least five (05) days of supply, calculated based on the average daily domestic consumption of the previous year, including the structure of types.
3. From the effective date of this Decree, key traders in petrol and oil production must ensure a stable compulsory petrol and oil reserve level in accordance with existing regulations on petrol and oil reserves.
4. The mechanism for using the compulsory petrol and oil reserve shall be implemented in accordance with the national reserve law and/or directives from the Ministry of Industry and Trade to ensure the balance of supply and demand and stabilize the market when necessary.
Thus, key traders and petrol and oil distributors must ensure a stable compulsory minimum reserve level in accordance with the above regulations.
What are regulations on compulsory reserves of petrol and oil? Are retail petrol and oil stores required to reserve petrol and oil in Vietnam? (Image from the Internet)
Are retail petrol and oil stores required to reserve petrol and oil in Vietnam?
According to the provisions of Article 30 of Decree 83/2014/ND-CP regarding the entities required to reserve petrol and oil as follows:
Entities required to reserve petrol and oil
1. The entities required to reserve petrol and oil are key traders.
2. National reserves for petrol and oil as prescribed by the national reserve law.
Clause 11, Article 3 of Decree 83/2014/ND-CP (as amended and supplemented by Clause 2, Article 1 of Decree 95/2021/ND-CP) defines key petrol and oil traders as follows:
Terms Explanation
...
11. Key traders include key petrol and oil trading traders and key petrol and oil production traders.
Key petrol and oil trading traders are traders who purchase petrol and oil directly from production plants, mix petrol and oil (or from enterprises entrusted with the right to purchase and sell all petrol and oil products of the plant in case the production plant does not directly sell petrol and oil products) or import petrol and oil to supply their system, sell to other petrol and oil traders, and export petrol and oil.
Enterprises entrusted with the right to purchase and sell all petrol and oil products of the refinery plant have the right to export and import petrol and oil products to ensure the balance of petrol and oil supply sources for key petrol and oil trading traders as guided by the Ministry of Industry and Trade.
Key petrol and oil production traders are traders who carry out the processing technology of distilling crude oil, petrol and oil products, petrol and oil semi-finished products, waste and other raw materials into petrol and oil products.
Thus, retail petrol and oil stores are not required to reserve petrol and oil .
What are penalties imposed upon key trader for failing to reserve petrol and oil in Vietnam?
Pursuant to the provisions of Article 30 of Decree 99/2020/ND-CP on handling violations of petrol and oil reserve regulations as follows:
Violations of petrol and oil Reserve Regulations and petrol and oil Production Materials
1. A fine ranging from 100,000,000 VND to 120,000,000 VND shall be imposed on petrol and oil production traders who fail to reserve the required petrol and oil production material reserves or reserve a lower than the prescribed minimum level.
2. A fine ranging from 120,000,000 VND to 140,000,000 VND shall be imposed on key traders who fail to reserve required petrol and oil reserves or reserve a lower than the prescribed minimum level.
Additionally, Article 5 of Decree 99/2020/ND-CP specifies that the fines prescribed in Chapters II, III, and IV of Decree 99/2020/ND-CP are fines applicable to organizations. In cases where administrative violations are committed by individuals, the fine shall be half of the applicable fine for organizations.
Therefore, violations of petrol and oil reserve regulations by key traders fall under Chapter III of Decree 99/2020/ND-CP. As such, key traders who are organizations failing to reserve petrol and oil will be fined from 120,000,000 VND to 140,000,000 VND.
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