How many times a month does the state regulate petrol and oil price in Vietnam?
How many times a month does the state regulate petrol and oil price in Vietnam? What are regulations on Petrol and Oil Price Stabilization Fund in Vietnam? Can traders who rent petrol and oil retail stores be granted a certificate of eligibility to act as a petrol and oil general agent in Vietnam?
Hello, let me ask you how often I am interested in administration of the state's petrol price because it is directly related to daily life. So in a month, how many times does the state conduct adjustment of petrol prices?
Please advise. Thankyou.
How many times a month does the state regulate petrol and oil price in Vietnam?
In Clause 27, Article 1 of Decree 95/2021/ND-CP, there are regulations on petrol and oil price regulation principles as follows:
3. Petrol and oil price regulation dates
Petrol and oil regulation dates shall be the 1st, 11th and 21st every month. In case a price regulation date is on weekend or public holiday, it will be delayed to the working day succeeding the weekend or public holiday. A price regulation period that occurs during the Lunar new year period shall be delayed to the next price regulation period.
In case of unusual fluctuations in petrol and oil prices that have considerable impacts on socio-economic development and the people's life, the Ministry of Industry and Trade shall submit a report to the Prime Minister for considering and deciding the petrol and oil price regulation time.
According to current regulations in Vietnam, normally the state will regulate petrol prices three times a month, on the 1st, 11th and 21st every month. However, if the operating period falls on a holiday or public holiday according to the regulations of the State, the operating time will be postponed to the next working day after the holiday or public holiday. For the operating period that coincides with the Lunar New Year, the operating time is postponed to the next operating period. In addition, the Prime Minister can consider and decide on the time to administer gasoline prices when there are unusual fluctuations.
What are regulations on Petrol and Oil Price Stabilization Fund in Vietnam?
In Clause 26, Article 1 of Decree 95/2021/ND-CP, there are regulations on petrol and Oil Price Stabilization Fund as follows:
1. Petrol and Oil Price Stabilization Fund is a financial fund that is not included in state budget (hereinafter referred to as "Price Stabilization Fund") and is used solely for regulation and stabilization of domestic petrol and oil prices.
Major petrol and oil trader shall contribute to Price Stabilization Fund; keep separate records of Price Stabilization Fund by opening accounts at commercial banks or foreign bank branches (FBB) that are operating legally in Vietnam (hereinafter referred to as "banks") in accordance with this Decree and instructions of the Ministry of Finance. Major petrol and oil trader shall be legally responsible for their selection of banks, management and maintenance of the Price Stabilization Fund's balance.
2. Contribution to and use of Price Stabilization Funds
a) Contributions to Price Stabilization Fund: an constituent to the base price; a specific amount of money per liter or kilogram of petrol or oil sold (VND/l or VND/kg) according to petrol and oil price regulation notices of the Ministry of Industry and Trade.
At times when the Price Stabilization Fund balance is high, the Ministry of Industry and Trade will consider reducing or suspending contributions to Price Stabilization Fund.
b) Spending of Price Stabilization Fund is a specific amount of money per liter or kilogram of petrol or oil sold (VND/l or VND/kg) according to petrol and oil price regulation notices of the Ministry of Industry and Trade, and may be flexibly adjusted in case of sharp increases in the base price or the increase in petrol and oil prices affects socio-economic development and the people's life.
Major petrol and oil traders may only use Price Stabilization Fund according to petrol and oil price regulation notices of the Ministry of Industry and Trade and must not use Price Stabilization Fund for other purposes.
c) The Ministry of Industry and Trade shall, in consideration of reality, the Price Stabilization Fund balance, developments of petrol and oil prices at the time of petrol and oil price regulation, decide the levels of contributions and spending of the Price Stabilization Fund after reaching a consensus with the Ministry of Finance.
d) Contributions and spending of Price Stabilization Fund in a period shall be offset against each other and promptly transferred to the Price Stabilization Fund's account at the bank; deposit account balance of Price Stabilization Fund will earn an interest at the rate quoted by the bank where the trader's Price Stabilization Fund account is opened. Interest earned will be included in the Price Stabilization Fund.
In case the Price Stabilization Fund balance is zero when a major petrol and oil trader needs to use it, the trader may take a loan or use lawful financial sources to cover the deficit (negative balance).
- In case the major petrol and oil trader takes a bank loan to cover the Price Stabilization Fund deficits, the lowest interest rate agreed by the bank that grants the loan shall apply.
- In case the major petrol and oil trader uses lawful financial sources to cover the Price Stabilization Fund deficits, the maximum interest rate shall be the interest rate applied to lowest checking accounts of one of the banks where the trader opens Price Stabilization Fund accounts.
3. The major petrol and oil trader shall disclose on the enterprise's website or the media information about contributions to, use, interest earned and balance of the Price Stabilization Fund; and submit reports to the Ministry of Finance and the Ministry of Industry and Trade.
4. The major petrol and oil trader shall organize the contribution to, use and management of the Price Stabilization Fund, submit reports and disclose information in accordance with regulations of this Decree and instructions of the Ministry of Finance. Violations (if any) shall be handled in accordance with the Government’s Decree No. 109/2013/NĐ-CP and Decree No. 49/2016/NĐ-CP. The major petrol and oil trader that commits violations multiple times shall face business suspension or revocation of the Certificate of Eligible Major Petrol and Oil Trader as prescribed by applicable laws.
5. The Ministry of Finance shall provide guidance on contributions, use and management of Petrol and Oil Price Stabilization Funds; scale of Petrol and Oil Price Stabilization Funds; inspect and supervise major petrol and oil traders implementing regulations on contribution and use of Petrol and Oil Price Stabilization Funds.
According to this Article, the Petrol and Oil Price Stabilization Fund in Vietnam will be implemented according to the above provisions.
Can traders who rent petrol and oil retail stores be granted a certificate of eligibility to act as a petrol and oil general agent in Vietnam?
In Article 19 of Decree 83/2014/ND-CP as amended by Clause 15, Article 1 of Decree 95/2021/ND-CP, conditions on petrol and oil retail agents are as follows:
A trader that fully meets the following conditions may be granted an eligibility certificate by a provincial-level Industry and Trade Department to act as a petrol and oil retail agent (below referred to as agent):
1. Being lawfully established; having registered for petrol and oil trading as specified in its enterprise registration certificate.
2. There are petrol and oil retail stations that are under ownership or lease with lease duration of at least 05 years and granted the Certificate of Eligibility for Petrol and Oil Retailing according to Article 25 of this Decree.
3. Having its managers and trading staff trained in fire prevention and fighting and environmental protection under current regulations and having training certificates.
Thus, a trader who hires a petrol and oil retail station will be granted a Certificate of Eligibility for Petrol and Oil Retailing if it has a lease term of 5 years or more in Vietnam.
Best Regards!
