What are penalties for gasoline stores to close and not sell to customers due to reduced gasoline prices in Vietnam?
What are penalties for gasoline stores to close and not sell to customers due to reduced gasoline prices in Vietnam? Can petrol prices be adjusted according to agreements with customers in Vietnam? What are petrol and oil price regulation dates in Vietnam?
Recently, due to the drop in gas prices, there are a number of gas stations that have closed for fear of loss. May I ask, are these gas stations fined? Thank you!
What are penalties for gasoline stores to close and not sell to customers due to reduced gasoline prices in Vietnam?
According to the provisions of Clause 4, Article 35 of Decree 99/2020/ND-CP, violations against other regulations on petrol and oil retail are as follows:
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;
Pursuant to Article 5 of Decree 99/2020/ND-CP stipulating the fine level as follows:
The fines prescribed in Chapters II, III and IV hereof are those imposed on organizations. If an administrative violation is committed by an individual, the fine imposed on such individual equals to one half of the fine imposed on an organization.
At the same time, petrol stations must conduct petroleum business in accordance with the provisions of Decree 83/2014/ND-CP, Decree 95/2021/ND-CP on petrol and oil trading.
According to this Article, if these petrol stations do not sell or stop selling without legal permission from the competent state management agency, they will be fined from 10,000,000 VND to 20,000,000 VND for organizations and from 5,000,000 VND to 10,000,000 VND for individuals in Vietnam.
Can petrol prices be adjusted according to agreements with customers in Vietnam?
According to Article 433 of the 2015 Civil Code stipulates as follows:
1. Price shall be as agreed by the parties or as determined by a third person at the request of the parties. With respect to property in a transaction for which a competent authority has provided price and method of payment, the parties shall reach an agreement in accordance with such regulations.
2. Where parties reach no agreement or reach an agreement with unclear terms about price and method of payment, the price shall be determined according to the market price and the method of payment shall be determined according to the customary practice at the time and place of entering into the contract.
In addition, Article 38 of Decree 83/2014/ND-CP is amended by Clause 27, Article 1 of Decree 95/2021/ND-CP stipulating the petrol and oil price regulation principles, specifically as follows:
1. Petrol and oil prices shall follow market mechanism and be regulated by the State according to oil price changes in the world and current socio-economic developments.
2. Major petrol and oil traders and petrol and oil distributors are entitled to decide the wholesaling prices. Major petrol and oil traders and petrol and oil distributors may decide retailing prices (except mazut which must be wholesaling prices) in their distribution systems according to actual costs incurred. Retailing prices must not exceed the regulated prices announced by competent authorities.
In an area that are far away from ports, major depots, petrol and oil production facilities, if the increase in actual (and audited) costs are legitimate and causes the selling prices to exceed the regulated prices, the major petrol and oil trader may decide the actual selling prices in such area (as notified to the Ministry of Industry and Trade) to cover the cost increase by up to 2% of the regulated prices announced at that time.
Major petrol and oil traders and petrol and oil distributors shall send selling price notifications to the Ministry of Industry and Trade and the Ministry of Finance immediately after their petrol and oil selling prices are decided.
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.
4. In case of fluctuations of price constituents that cause the base price to increase by more than 10%, or there are considerable fluctuations of 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 specific price regulation measures.
5. Petrol and oil products whose base prices are announced by the State are commonly used petrol and oil products on the market.
Thus, the store and the customer cannot negotiate the petrol price by themselves, but the price is decided by the state, in accordance with the socio-economic situation in Vietnam.
What are petrol and oil price regulation dates in Vietnam?
According to Clause 3, Article 38 of Decree 83/2014/ND-CP as amended by Clause 27, Article 1 of Decree 95/2021/ND-CP stipulating petrol and oil price regulation principles, specifically 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 this Article, gasoline prices will be adjusted once, specifically on the 1st, 11th and 21st of every month. Except for the case of abnormal fluctuations, the Prime Minister shall consider and decide on the appropriate time to regulate petrol and oil prices in Vietnam.
Best Regards!
