Ministry of Industry and Trade: Proposal to reduce petrol and oil price regulation dates to 07 days in Vietnam

Ministry of Industry and Trade: Proposal to reduce petrol and oil price regulation dates to 07 days in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

Draft Decree

The Ministry of Industry and Trade is drafting a Decree amending and supplementing a number of articles of Decree 95/2021/ND-CP dated November 1, 2021 and Decree 83/2014/ND-CP dated September 3, 2014 of the Government on petrol and oil trading:

Proposal to reduce petrol and oil price regulation dates to 07 days in Vietnam

Specifically, in the draft Decree, it is proposed to amend and supplement Article 38 of Decree 83/2014/ND-CP to be amended and supplemented in Clause 27, Article 1 of Decree 95/2021/ND-CP with respect to the content Clause 3, Article 38 on petrol and oil price regulation dates in Vietnam is as follows:

- Operating time/announcement of base prices for petroleum products is every Thursday.

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.

Based on the above regulations, the petrol and oil price regulation dates on the market will be reduced to 07 days, including holidays and weekly days off (except in cases of unusual fluctuations.

Current petrol and oil price regulation dates in Vietnam

According to Clause 3, Article 38 of Decree 83/2014/ND-CP amended in Clause 27, Article 1 of Decree 95/2021/ND-CP, petrol and oil price regulation dates are as follows:

- 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.

Principles for operating gasoline prices in Vietnam

Article 38 of Decree 83/2014/ND-CP amended in Clause 27, Article 1 of Decree 95/2021/ND-CP also stipulates petrol and oil price regulation principles as follows:

- 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.

- 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.

Nguyen Nhu Mai

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