What is the base price for biogasoline calculation? How to determine the Ethanol fuel price for calculating base price of biogasoline in Vietnam?
Vietnam: What is the base price for biogasoline calculation?
Pursuant to Clause 28, Article 1 of Decree 95/2021/ND-CP (in addition to Article 38a of Decree 83/2014/ND-CP) has the following provisions:
Base price calculation:
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2. The base price for biogasoline equals (=) percentage (%) of unleaded gasoline volume multiplied by (x) {(global price plus (+) cost of transport from the foreign country to a Vietnam's port plus (+) import duties) multiplied by (x) import ratio plus (+) global price plus (+) premium plus (+) cost of transport of gasoline from the domestic refinery to the port (if any)) multiplied by (x) domestic production ratio)} plus (+) percentage of ethanol fuel (%) multiplied by (x) ethanol fuel price plus (+) standard operating cost plus (+) contribution to Price Stabilization Fund plus (+) standard profit plus (+) taxes, fees and other amounts payables according to applicable laws. Where:
- The percentage of unleaded gasoline volume and percentage of ethanol fuel volume for calculation of biogasoline base price as prescribed in this Decree shall be the highest permissible blending ratio established by competent authorities; the actual blending ration must not exceed the limits established by competent authorities.
- The Ministry of Finance shall determine the ethanol fuel price used for calculation of biogasoline base price operating costs and notify it to the Ministry of Industry and Trade for calculation of the base price.
- Pricing constituents including: global price, cost of transport of gasoline from the foreign country to a Vietnam's port, premium for calculation of domestically produced gasoline price, cost of transport of gasoline from the domestic refinery to port (if any), import duties, excise tax, standard operating costs, contribution to the Price Stabilization Fund plus (+), standard profit shall comply with Point c Clause 1 of this Article.
Accordingly, the formula for calculating the base price of biofuel is:
The base price for biogasoline equals (=) percentage (%) of unleaded gasoline volume multiplied by (x) {(global price plus (+) cost of transport from the foreign country to a Vietnam's port plus (+) import duties) multiplied by (x) import ratio plus (+) global price plus (+) premium plus (+) cost of transport of gasoline from the domestic refinery to the port (if any)) multiplied by (x) domestic production ratio)} plus (+) percentage of ethanol fuel (%) multiplied by (x) ethanol fuel price plus (+) standard operating cost plus (+) contribution to Price Stabilization Fund plus (+) standard profit plus (+) taxes, fees and other amounts payables according to applicable laws.
What is the base price for biogasoline calculation? How to determine the Ethanol fuel price for calculating base price of biogasoline in Vietnam? (Image from the Internet)
How to determine the Ethanol fuel price for calculating base price of biogasoline in Vietnam?
Pursuant to Clause 1, Article 9 of Circular 104/2021/TT-BTC, there are regulations on determination of Ethanol fuel price for calculating base price of biogasoline:
- Ethanol fuel serving calculation of base price of biogasoline under this Circular includes denatured Ethanol fuel and non-denatured Ethanol fuel (hereinafter referred to as “Ethanol”).
- Ethanol price only serves calculation of base price and is determined using weighted average of prices of domestic Ethanol and imported Ethanol.
Where:
+ Price of domestic Ethanol means the price for purchasing Ethanol from the factories in liters incurred by major petrol and oil traders from domestic producers in order to blend biogasoline (excluding VAT); Domestic Ethanol amount means the liters of Ethanol corresponding to the reported Ethanol price.
Import Ethanol price means the CIF price plus import duties (if any) calculated by actual number of liters. Import Ethanol amount means the liters of Ethanol inspected at an unloading port of a major petrol and oil trader during the reporting period.
+ Ethanol price shall be calculated every 1 month (from the 21st of the preceding month to the 20th of the reporting month). The average Ethanol price in the reporting month shall apply to the calculation of biogasoline base price in the next month.
+ On the basis of report figures of major petrol and oil traders, Ministry of Finance shall identify Ethanol fuel price and inform Ministry of Industry and Trade to apply the biolgasoline base price.
Vietnam: When will the major petrol and oil traders be responsible for submitting reports on Ethanol price?
Pursuant to Clause 2, Article 9 of Circular 104/2021/TT-BTC, on the 21st of the reporting month, the major petrol and oil traders are responsible for submitting reports on domestic Ethanol price, import Ethanol price, amount of Ethanol purchased from domestic producers, and amount of Ethanol imported respectively to Ministry of Finance (Department of Price Management) and Ministry of Industry and Trade (Domestic Market Department).
If the reporting day is a holiday or not a working day, the report must be submitted on the next working day.
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