Can gas stations arbitrarily close in Vietnam? What are penalties for arbitrarily closing a gas station in Vietnam?

Can gas stations arbitrarily close in Vietnam?

In Article 26 of Decree 83/2014/ND-CP amended by Clause 21, Article 1 of Decree 95/2021/ND-CP on rights and obligations of petrol and oil traders over/toward petrol and oil retail stations, accordingly:

1. To control petrol and oil retail stations in their distribution systems.

2. To notify in writing provincial-level Industry and Trade Departments that have granted certificates of eligibility to petrol and oil retail stations of periods during which they cease the sale of petrol and oil and reasons for cessation.

3. To post up selling prices of petrol and oil and sell at such prices.

4. To put up signboards of traders that are key traders or distributors supplying petrol and oil to stations at sale areas. Such signboards must have all information prescribed by law.

5. To post up daily working hours at sale areas where customers can easily see.

6. Only stop selling after a written approval is issued by Department of Industry and Trade, except in force majeure events (fire, flood or the sale cannot be maintained despite all available measures have been implemented).

7. To take responsibility for quality, volume and announced prices of petrol and oil sold under regulations.

8. To report to and request provincial-level Industry and Trade Departments to modify certificates of eligibility granted to petrol and oil retail stations at least thirty (30) days before ceasing the receipt of petrol and oil from suppliers.

Thus, petrol and oil retail stations are not allowed to arbitrarily close or stop selling without written approval from the Department of Industry and Trade, except for the force majeure cases mentioned above in Vietnam.

Can gas stations arbitrarily close in Vietnam? What are penalties for arbitrarily closing a gas station in Vietnam? (Image from the Internet)

What are penalties for arbitrarily closing a gas station in Vietnam? 

Pursuant to Article 35 of Decree 99/2020/ND-CP regulating violations against other regulations on petrol and oil retail, specifically as follows:

1. A fine ranging from VND 1,000,000 to VND 3,000,000 shall be imposed for failure to display or clearly display selling time within a sale area as prescribed.

2. A fine ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for selling petrol and oil using a mini filling column, hand-shake pump, barrel, bottle or another container, except for the case where the trader is a business household or petrol and oil distribution station belonging to the armed force (national defense or public security) in a mountainous area or highlands as prescribed which is allowed by the People’s Committees of a province or central-affiliated city to act as petrol and oil retail agent with the scale and equipment relevant to the petrol and oil trading conditions within such area.

3. A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for failure to register selling time of a petrol and oil retail outlet with a competent authority as prescribed.

4. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for any of the following violations:

a) Reducing the selling time shorter than the displayed or previously applied time without a plausible reason or without notifying a competent authority according to regulations;

b) Failure to sell or suspend sale without written approval by a competent authority or without notifying a competent authority as prescribed;

c) Reducing the sales of sold petrol and oil less than those of previously sold petrol and oil without a plausible reason or without notifying a competent authority according to regulations;

5. A fine ranging from VND 20,000,000 to VND 40,000,000 shall be imposed for selling petrol and oil using an automatic or mobile petrol and oil filling column without permission of the competent authority, except for the case specified in Clause 2 of this Article.

6. Additional measures:

The exhibit or instrumentality used for committing the administrative violation mentioned in Clause 2 or 5 of this Article shall be confiscated.

7. Remedial measures:

The violator is compelled to return the illegal profits obtained from the violations specified in Clauses 2 and 5 of this Article.

According to Clause 1, Article 196 of the 2015 Penal Code on the crime of speculation, as follows:

1. Any person who takes advantage of the scarcity or fakes scarcity during a natural disaster, epidemic, war or financial hardship to buy in large quantities and stockpile goods from a price stabilization program or goods priced by the State in order to earn illegal profit in any of the following circumstances shall be liable to a fine of from VND 30,000,000 to VND 300,000,000 or face a penalty of 06 - 36 months' imprisonment:

a) The goods are assessed at from VND 500,000,000 to under VND 1,500,000,000;

b) The illegal profit reaped is from VND 100,000,000 to under VND 500,000,000.

According to this Article, when a gas station arbitrarily closes, it can be fined at least from 10,000,000 to 300,000,000 VND or imprisoned from 06 months to 03 years in Vietnam.

Best regards!