From November 17, 2023, shorten the petrol and oil price regulation dates to 7 days in Vietnam

From November 17, 2023, shorten the petrol and oil price regulation dates to 7 days in Vietnam (Internet image)

On November 17, 2023, the Government issued Decree 80/2023/ND-CP amending a number of articles of Decree 95/2021/ND-CP and Decree 83/2014/ND-CP petrol and oil trading.

1. From November 17, 2023, shorten the petrol and oil price regulation dates to 7 days in Vietnam

Specifically, Point 3, Clause 27, Article 1 of Decree 95/2021/ND-CP, amended in Decree 80/2023/ND-CP, stipulates the time for operating petrol prices as follows:

petrol price regulation is carried out every Thursday.

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

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

In case the price of petroleum products fluctuates abnormally, affecting socio-economic development and people's lives, the Ministry of Industry and Trade is responsible for reporting to the Prime Minister to consider and decide on an appropriate time to regulate petrol prices.

Thus, the current petrol price management period has been shortened from 10 days to 7 days.

2. Subjects entitled to decide the wholesaling prices of petrol and oil in Vietnam

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.

(Point 3, Clause 27, Article 1 of Decree 95/2021/ND-CP)

More details can be found in Decree 80/2023/ND-CP taking effect on November 17, 2023.

Ho Quoc Tuan

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