What are regulations on standard profit for calculation of base petrol and oil price in Vietnam?

1. What are regulations on standard profit for calculation of base petrol and oil price in Vietnam?

According to Article 11 of Circular 104/2021/TT-BTC stipulating standard profit for calculation of base petrol and oil price as follows:

The standard profit specified under this Circular only serves calculation of base petrol and oil price; the maximum standard profit allowed in the base price formula which is VND 300/liter, kg shall be informed and adjusted by Ministry of Finance in writing to match practical petrol and oil situations. Actual profits generated by petrol and oil trading depend on business results of major petrol and oil traders.

2. What are regulations on determination of percentages (%) of domestically produced and imported petrol and oil for calculation of petrol and oil product price in Vietnam? 

According to Article 10 of Circular 104/2021/TT-BTC, determination of percentages (%) of domestically produced and imported petrol and oil for calculation of petrol and oil product price is regulated:

1. Percentages (%) of domestically produced and imported petrol and oil for calculation of petrol and oil product price are determined as follows:

a) Amount of petrol and oil domestically produced means the amount of petrol and oil sold by domestic refineries (excluding solvents, aviation fuels; excluding amount of petrol and oil for self-sustain and export). Percentage (%) of petrol and oil domestically produced equals (=) Amount of petrol and oil domestically produced divided by (:) Total amount of petrol and oil imported and domestically produced during the reporting period of major petrol and oil producers.

b) Amount of petrol and oil imported shall conform to Point a Clause 1 Article 3 hereof. Percentage (%) of petrol and oil imported equals (=) Amount of petrol and oil imported divided by (:) Total amount of petrol and oil imported and domestically produced during the reporting period of major petrol and oil producers.

c) Figures shall be collected on a Quarterly basis (from the 21^st of the month preceding the first month of a Quarter to the 20^th of the last month of said Quarter).

2. Major petrol and oil traders are responsible for consolidating and submitting reports on quantity and types of petrol and oil sold during the period between the 21^st of the month preceding the first month of a Quarter to the 20^th of the last month of said Quarter to Ministry of Industry and Trade and Ministry of Finance by the 21^st of each Quarter. Major petrol and oil traders are legally responsible for accuracy of the report figures.

3. On the basis of provided figures on amount of petrol and oil imported of Ministry of Finance and reports on amount of petrol and oil traded domestically submitted by major petrol and oil traders, Ministry of Industry and Trade shall calculate and identify percentages (%) of petrol and oil domestically produced and imported in order to calculate base price according to Article 1 of Decree No. 95/2021/ND-CP.

Best Regards!