What are methods for setting up the Petroleum Price Stabilization Fund of Vietnam?

What are methods for setting up the Petroleum Price Stabilization Fund of Vietnam?

Pursant to Article 4 of the Circular 103/2021/TT-BTC stipulating methods for setting up the Petroleum Price Stabilization Fund of Vietnam as follows:

1. The petrol and oil price stabilization fund is set aside with a specific amount of three hundred VND/liter (300 VND/liter) for gasoline, diesel and kerosene oils and three hundred VND/kg (300 VND) VND/kg) for oils at the actual temperature consumed in the domestic market and is determined as a component of the base price and selling price of the main petrol and oil trader. The setting up of the petrol and oil price stabilization fund is made concurrently with the base price management period.

2. The level of deduction for the petrol and oil price stabilization fund specified in Clause 1 of this Article is adjusted flexibly and in line with reality at the time of petrol and oil price regulation as follows:

a) Adjustment to decrease or suspend the setting up of the petrol and oil price stabilization fund below the level specified in Clause 1, Article 4 of this Circular when the elements constituting the base price of petrol and oil in the announced period increase by more than five percent (>5%) compared with the base price of petrol and oil announced in the preceding period or the increase in petrol and oil prices affects socio-economic development and people's lives.

In case of necessity, increase the level of deduction for setting up the petrol and oil price stabilization fund higher than the level specified in Clause 1, Article 4 of this Circular when the elements constituting the base price of petrol and oil in the announced period decrease by more than five percent (>5%) compared to the base price of petrol announced in the preceding period or based on the balance of the Petroleum Price Stabilization Fund, the actual situation at the time of announcing the base price of petrol and oil.

b) The Ministry of Industry and Trade shall base themselves on the balance of the petrol and oil price stabilization fund, the actual situation at the time of petrol and oil price administration, and the evolution of the base price of petrol and oil, and opinions of the Ministry of Finance to decide the level of deduction for setting up the petrol and oil price stabilization fund in accordance with market developments; In case the Ministry of Industry and Trade and the Ministry of Finance have different opinions, the Ministry of Industry and Trade shall decide to apply.

3. The total amount set up for the petrol and oil price stabilization fund in the period of the leading petrol and oil trader is determined by the amount set aside for setting up the petrol and oil price stabilization fund in the period specified in the notice on petrol and oil price management issued by the Ministry of Industry and Trade (x) with the volume of gasoline and oil at actual temperature consumed in the domestic market in the period of the leading petrol and oil trader.

What are methods for spending and using the Petroleum Price Stabilization Fund of Vietnam?

Pursant to Article 5 of the Circular 103/2021/TT-BTC stipulating methods for spending and using the Petroleum Price Stabilization Fund of Vietnam as follows:

1. Expenses for using the petrol and oil price stabilization fund are made when the base price is higher than the current retail price or the increase in petrol and oil prices affects socio-economic development and people's lives. The main trader of petrol and oil is only allowed to spend using the petrol and oil price stabilization fund according to the notice of petrol and oil price management of the Ministry of Industry and Trade. The expenditure and use of the petrol and oil price stabilization fund shall be made concurrently with the petrol and oil price management period specified in Clause 27, Article 1 of Decree No. 95/2021/ND-CP.

2. The level of expenditure for the use of the Petroleum Price Stabilization Fund is flexibly adjusted to suit the reality and the balance of the Price Stabilization Fund at the time of petrol and oil price regulation as follows:

a) Do not use the Petroleum Price Stabilization Fund in case the elements constituting the base price of petrol and oil in the announced period increase by less than seven percent (<7%) compared with the base price of petrol and oil announced in the preceding period, except for cases where the increase in petrol and oil prices affects socio-economic development and people's lives.

b) Where the elements constituting the base price of petrol and oil in the announced period increase from seven percent (≥ 7%) to ten percent (≤10%) compared to the base price of petrol and oil announced in the preceding period, after reaching agreement with the Ministry of Finance, the Ministry of Industry and Trade shall decide the level of expenditure to use the petrol and oil price stabilization fund to suit the market's movements; In case the Ministry of Industry and Trade and the Ministry of Finance have different opinions, the Ministry of Industry and Trade shall decide to apply.

c) In case the elements constituting the base price of petrol and oil are announced by more than ten percent (> 10%) compared to the base price announced in the preceding period or the increase in petrol and oil prices affects the development economy - society and people's life, the Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Finance in reporting to the Prime Minister for consideration and direction.

3. Total expenditure for the use of the petrol and oil price stabilization fund in the period of the leading petrol and oil trader is determined by the level of spending using the petrol and oil price stabilization fund specified in the notice on petrol and oil price management issued by the Ministry of Industry and Trade (x) with the volume of gasoline and oil at actual temperature consumed in the domestic market in the period of the leading petrol and oil trader.

Best regards!