Based on what formula is the base price of petrol and biogasoline calculated in Vietnam?

Based on what formula is the base price of petrol calculated in Vietnam?

On November 17, 2023, the Government has just issued Decree 80/2023/ND-CP amending and supplementing a number of articles of Decree 95/2021/ND-CP dated November 1, 2021 and Decree 83/2014/ND-CP dated September 3, 2014 of the Government on petroleum business.

According to this Article, from November 17, 2023, base price of gasoline and oil will be determined according to the following formula:

In there:

- Factors that form the base price, including tax expenses to calculate the base price of gasoline and oil according to the provisions of Decree 80/2023/ND-CP are only applicable to calculate the base price of gasoline and oil. 

- The proportion (%) of petroleum output from domestic and imported sources to calculate the base price is determined quarterly; The output proportion of the immediately preceding quarter is applied to calculate the base price for the base price operating periods of the next quarter.

Quarterly, on the basis of data provided on imported petroleum output by the Ministry of Finance and reports on domestic petroleum sales by key petroleum producers (from the 21st of the previous month adjacent to the first month of the quarter to the 20th of the last month of the quarter), the agency in charge of administering petroleum prices calculates and determines the proportion (%) of petroleum output from domestic and imported sources to calculate the base price.

- Gasoline price from imported sources = world gasoline price + cost of bringing gasoline from abroad to Vietnamese ports + standard business costs + price stabilization fund setting + plus standard profit + expenses non-tax (import tax, special consumption tax (if any), environmental protection tax (if any), value added tax) + fees and other deductions according to current law provisions .

- Gasoline prices from domestic production sources

Price of gasoline from domestic production = world price of gasoline + or - premium (if any) + cost of bringing gasoline from domestic refineries to port (if any) + fixed business costs level + level of deduction for price stabilization fund + normed profit + expenses for taxes, fees and other deductions according to current law provisions.

Based on what formula is the base price of petrol and biogasoline calculated in Vietnam? (Image from the Internet)

Based on what formula is the base price of biogasoline calculated in Vietnam?

In Article 38a of Decree 83/2014/ND-CP supplemented by Clause 12, Article 1 of Decree 80/2023/ND-CP, there are regulations on the base price of biogasoline as follows:

Base price of biogasoline = percentage of unleaded gasoline volume (%) x ((world gasoline price + cost of bringing gasoline from abroad to Vietnamese ports + cost of gasoline import tax) x proportion imported gasoline output + (world gasoline price + premium + cost of bringing gasoline from domestic refinery to port (if any)) x proportion of gasoline output from domestic production sources)} + proportion percent volume of fuel ethanol (%) provisions of current law.

What is determination of time limit for petrol and oil price regulation in Vietnam?

In Clause 3, Article 38 of Decree 83/2014/ND-CP amended by Clause 27, Article 1 of Decree 95/2021/ND-CP and Clause 11, Article 1 of Decree 80/2023/ND-CP, there are principles stipulated. Operate gasoline prices as follows:

Principles for operating gasoline prices

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3. Time to control gasoline prices

Gasoline price regulation is carried out every Thursday. In case the price management time coincides with the Lunar New Year holiday, it will be carried out as follows: If Thursday falls on the last day of the lunar year (29th or 30th of the Lunar New Year), the gasoline price management will be carried out. performed on the immediately preceding Wednesday. If Thursday is the 1st, 2nd or 3rd day of Tet, the gasoline price management time will be on the 4th day of Tet.

In case the price management time coincides with a prescribed holiday, it will be carried out as follows: If Thursday coincides with the first day of a holiday, the gasoline price management time will be carried out on the following Wednesday. If Thursday falls on the remaining holidays, the gasoline price control period is carried out on the first working day after the holiday.

In case the prices of petroleum products have unusual fluctuations, affecting socio-economic development and people's lives, the Ministry of Industry and Trade is responsible for reporting to the Prime Minister for consideration and decision on the time of investigation gasoline prices accordingly.

4. In cases where the factors constituting fluctuations cause the base price to increase by more than ten percent (> 10%) of the previous base price or in cases where the prices of petroleum products have major fluctuations regarding socio-economic development and people's lives, the Ministry of Industry and Trade is responsible for reporting to the Prime Minister for consideration and decision on specific administrative measures.

5. The base prices of petroleum products announced by the state are commonly consumed petroleum products on the market.

Thus, the petrol and oil price regulation date in Vietnam is carried out every Thursday.

In case it coincides with the Lunar New Year holiday:

- If Thursday falls on the last day of the lunar year (29 or 30 of the Lunar New Year), the gasoline price adjustment is carried out on the immediately preceding Wednesday.

- If Thursday is the 1st, 2nd or 3rd day of Tet, the gasoline price management time will be on the 4th day of Tet.

In case the petrol and oil price regulation date coincides with a holiday:

- If Thursday coincides with the first day of the holiday, the gasoline price administration period will be carried out on the immediately preceding Wednesday.

- If Thursday falls on the remaining holidays, the gasoline price control period is carried out on the first working day after the holiday.

Best regards!