During the recent increase in gasoline prices in Vietnam, the gasoline stabilization fund was also mentioned. So what is the Petrol stabilization fund for?
Article table of contents
What is the Petrol Price Stabilization Fund in Vietnam for? (illustration)
1. What is the price stabilization fund in Vietnam ?
A price stabilization fund is a financial fund that is not included in the state budget and is only used for price stabilization purposes as prescribed by a competent state agency.
2. Types of goods in Vietnam with a price stabilization fund
Goods in Vietnam with price stabilization fund are Gasoline, finished oil for domestic consumption at actual temperature including:
- Engine gasoline (excluding aircraft gasoline);
- Kerosene Oil
- Diesel;
- Mazut oil
Thus, according to the current regulations, only the above types of petroleum have a price stabilization fund in Vietnam.
3. What is the Petrol price stabilization fund in Vietnam for?
According to Clause 10, Article 4 of the Law on Price 2012, price stability means that the State applies appropriate measures to regulate supply and demand, finance, currency and other necessary economic and administrative measures to affect the formation and movement of prices, not to allow the prices of goods and services to rise too high or fall too low unreasonably.
According to Article 17 of the Law on Price 2012, establishing a price stabilization fund in Vietnam is a price stabilization measure.
Thus, the Petrol price stabilization fund in Vietnam aims to help the price of gasoline not rise too high or fall too low unreasonably.
(Article 17 of Law on Price 2012, Article 5 of Decree 177/2013/ND-CP, Clause 3, Article 1 of Decree 149/2016/ND-CP)
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