What are regulations on the accounting and transfer of the Petroleum Price Stabilization Fund of Vietnam?

Pursant to Article 6 of the Circular 103/2021/TT-BTC stipulating the accounting and transfer of the Petroleum Price Stabilization Fund as follows:

1. The leading petrol and oil trader shall have to fully and accurately record the deduction for setting up the petrol and oil price stabilization fund into the cost of goods sold; When using the petrol and oil price stabilization fund, the main trader of petrol and oil shall record the reduction in cost of goods sold.

2. Within five days (05 days) from the end of one (01) period of petrol and oil price regulation by the Ministry of Industry and Trade, the leading petrol and oil trader is responsible for accounting, deducting the amount already set up and spending (temporary amount) of the petrol and oil price stabilization fund in the preceding period, and refunding (for the case where the price stabilization fund at the leading petrol and oil trader is negative) or immediately transfer to the account of the petrol price stabilization fund (for the case of the Petroleum Price Stabilization Fund at the leading petrol and oil trader) of the leading petrol and oil trader.

3. The balance of the deposit account of the Petroleum Price Stabilization Fund is charged interest at the interest rate applied to the current deposit account of the bank where the leading petroleum trader opens a deposit account of the Petroleum Price Stabilization Fund in the same period.  The interest arising on the balance account of the Petroleum Price Stabilization Fund positive at the bank is recorded as an increase in the account of the Petroleum Price Stabilization Fund.

4. The main trader of petrol and oil shall use the petrol and oil price stabilization fund according to the executive notice of the Ministry of Industry and Trade, but at that time the balance of the deposit account of the Petroleum Price Stabilization Fund was no longer available (the balance of the deposit account of the Petroleum Price Stabilization Fund at the bank was zero (0)), the leading petrol and oil trader may borrow or use lawful financial sources to make up for the excess of the petrol and oil price stabilization fund (the balance of the petrol and oil price stabilization fund is negative); Specifically:

a) In case the main petrol and oil trader borrows from a bank to make up for the excess use of the Petroleum Price Stabilization Fund, interest will be charged at the lowest agreed-upon interest rate at the bank where the main petroleum trader borrows a loan.

Within five days (05 days) from the end of one (01) period of petrol and oil price regulation by the Ministry of Industry and Trade, the leading trader in petrol and oil trading shall have to account for and deduct the amount already set up and spent using the petrol and oil price stabilization fund in the preceding period. The time to start calculating the interest rate for the amount of money that the main petrol and oil trader borrows from the bank to offset the negative petrol price stabilization fund in the preceding period is determined from the date the bank provides the capital for key traders to trade in petrol and oil to make up for spending in excess of the Petroleum Price Stabilization Fund (the balance of the Petroleum Price Stabilization Fund is negative).

b) In case the main trader of petrol and oil uses lawful financial sources to make up for the expenditure in excess of the Petroleum Price Stabilization Fund, it will be charged the maximum interest rate equal to the interest rate applied to the lowest payment deposit account of one (01) in the banks where the leading trader opens a deposit account of the Petroleum Price Stabilization Fund.

Within five days (05 days) from the end of one (01) period of petrol and oil price regulation by the Ministry of Industry and Trade, the leading trader in petrol and oil trading shall have to account for and deduct the amount already set up and spent using the petrol and oil price stabilization fund in the preceding period. Time to start calculating interest on the amount of petrol and oil key traders using legal financial sources to compensate for the overspending of the Petroleum Price Stabilization Fund (the negative balance of the Petroleum Price Stabilization Fund) is determined from the date of the leading trader in petrol and oil in accounting and transferring to the Petroleum Price Stabilization Fund in the preceding period.

c) The amount of money that the main trader of petrol and oil borrows from a bank or uses a lawful financial source to make up for spending in excess of the Petroleum Price Stabilization Fund (the balance of the Petroleum Price Stabilization Fund is negative) will be refunded when the Petroleum Price Stabilization Fund has a positive balance, according to the principle that the financial portion mobilized to compensate for the excess use of the Petrol Price Stabilization Fund in the previous period will be refunded first.

5. The balance of the Petroleum Price Stabilization Fund at the end of the period is equal to (=) the balance of the Price Stabilization Fund at the beginning of the period plus (+) the total amount set up for the Price Stabilization Fund in the period minus (-) the total expenditure for the Stabilization Fund petrol price in the period plus (+) the profit calculated on the balance of the positive petrol price stabilization fund arising in the period minus (-) the profit calculated on the balance of the petrol price stabilization fund arising in the period negative (if any).

Before January 20 of the next fiscal year, the main petrol and oil trader shall have to summarize and report to the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department): the balance of the Petroleum Price Stabilization Fund at the beginning of the reporting period; Total output and types of gasoline and oil to be set aside and spent in the reporting period; Total amount set aside for setting up the petrol and oil price stabilization fund in the reporting period; Total amount spent using the Petroleum Price Stabilization Fund in the reporting period; Interests arising on the balance of the Petroleum Price Stabilization Fund are positive or negative in the reporting period; The balance of the Petroleum Price Stabilization Fund at the end of the reporting period; The petrol and oil price stabilization fund has a surplus, and the leading petrol and oil traders shall carry out the closing to the next year.

6. The main trader of petrol and oil is responsible for accounting, making and presenting financial statements in accordance with the provisions of the Law on Accounting No. 88/2015/QH13 dated November 20, 2015 and legal documents guiding the Accounting Law. The annual financial report of the Petroleum Price Stabilization Fund shall be sent to the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department) within ninety days (90 days) from the end of the annual accounting period for monitoring and supervision.

7. In case the enterprise ceases to operate as the main trader in petrol and oil trading, it is obliged to transfer and remit the entire balance of the Price Stabilization Fund to the state budget according to the provisions of Clause 8, Article 1 of Decree No. 95/2021/ND-CP; Specifically:

a) In case of bankruptcy or dissolution of an enterprise: Before carrying out the procedures for bankruptcy or dissolution of an enterprise, the leading petrol and oil trader is responsible for finalizing the petrol and oil price stabilization fund and send reports to the Ministry of Finance (Department of Price Management), Ministry of Industry and Trade (Department of Domestic Market); At the same time, transfer the entire amount of the petrol and oil price stabilization fund at the enterprise into the state budget and send a copy of the payment receipt to the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department).

b) In case the main trader of petrol and oil has his Certificate of eligibility to be a leading trader in petrol and oil revoked, immediately upon a decision or notice of the Ministry of Industry and Trade, the leading petrol and oil trader shall have to transfer and remit the entire amount of the petrol and oil price stabilization fund to the state budget and send a copy of the payment receipt to the Ministry of Finance (Price Management Department), Ministry of Industry and Trade (Domestic Market Department).

c) In case when the Certificate of eligibility to be the main trader of petrol and oil is due, the procedures for extension must be carried out according to the provisions of Decree No. 95/2021/ND-CP, at least thirty (30) working days in advance, before the Certificate expires, the leading petrol and oil trader is responsible for closing the balance of the Petroleum Price Stabilization Fund and send a report together with the account statement of the Petroleum Price Stabilization Fund to the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department).

When there is a decision or notice of the Ministry of Industry and Trade that the enterprise does not continue to operate in the role of the main trader of petrol and oil, the leading trader of petrol and oil is responsible for immediately remitting the full amount of money. The petrol and oil price stabilization fund shall be deposited into the state budget and sent a copy of the payment receipt to the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department).

d) The main trader of petrol and oil is responsible for transferring the entire amount of the petrol and oil price stabilization fund to the state budget by one of the following methods: Deposit directly at the commercial bank by transfer to the State Treasury account opened at the commercial bank; or pay through the bank's electronic payment service. Regarding accounting information of central budget revenues:

- About the Submission Chapter: According to the chapter of the enterprise management unit;

- Regarding the content of the payment: Subsection 4949 - "Other revenues" under section 4900 - "Other revenues".

Based on the report of the main trader of petrol and oil, the audit report on the Petroleum Price Stabilization Fund (if any), the Ministry of Industry, Trade and Finance reviews and compares the balance of the actual petrol and oil price stabilization fund at the enterprise with the balance of the petrol and oil price stabilization fund reported by the leading petrol and oil trader, transferred to the central budget to request the unit to adjust if there is a difference in data. The main trader in petrol and oil trading shall take full responsibility before law for the setting up, spending, use, reporting and management of the petrol and oil price stabilization fund.

8. In case of merger, consolidation, acquisition, joint venture, division or separation of enterprises, the balance of the Petroleum Price Stabilization Fund will be transferred to the balance of the leading petrol and oil trader who is the enterprise receiving the merger (in case of merger of enterprises), acquired enterprise (in case of enterprise acquisition) and new enterprise (in case of consolidation, joint venture, division or separation of enterprises). On the basis of the audit report on the Petroleum Price Stabilization Fund at the leading petrol and oil trader, the Inter-Ministry of Industry, Trade and Finance shall review and report to the competent authorities for consideration and handling each specific case according to the provisions of law.

Best regards!