Strictly handle acts of hoarding goods in anticipation of price increases in petroleum and biofuel trading in Vietnam

Strictly handle acts of hoarding goods in anticipation of price increases in petroleum and biofuel trading in Vietnam​ (Image from the Internet)

On December 26, 2024, the Minister of Industry and Trade of Vietnam issued Directive 16/CT-BCT on strengthening the implementation of solutions to promote biofuel consumption in Vietnam.

Strictly handle acts of hoarding goods in anticipation of price increases in petroleum and biofuel trading in Vietnam

To be specific, in Directive 16/CT-BCT, the Ministry of Industry and Trade of Vietnam requested the General Department of Market Management to enhance inspection, and monitoring of the implementation of the Roadmap for blending biofuel with traditional fuel, and swiftly handle violations in petroleum business, including biofuel.

Instruct the Market Management Departments of provinces and cities to cooperate with local Departments of Industry and Trade to deploy professional measures, formulate plans, and conduct regular and unexpected inspections of compliance with the law in the business activities of petroleum and biofuel enterprises; strictly handle acts of hoarding goods waiting for price increases and profiteering in petroleum and biofuel business activities.

Also, in Directive 16/CT-BCT, the Minister of Industry and Trade of Vietnam requires petroleum business traders to seriously continue implementing the following specific tasks and solutions:

- For key petroleum business traders:

+ Ensure the supply of E5 RON 92 biofuel to meet market demand according to the roadmap stipulated in Decision 53/2012/QD-TTg. Report the implementation status to the Ministry of Industry and Trade (the Domestic Market Department and the Science and Technology Department) before the 28th of each quarter for synthesis reporting.

+ Focus on sharing supply and profit within the distribution system reasonably to ensure uninterrupted fuel supply to the market. Support and encourage distributors and retail businesses in the system to boost biofuel consumption through preferential programs and suitable pricing policies to increase competitiveness compared to traditional mineral fuels.

+ Be responsible for fully and promptly providing data to the relevant authorities (Ministry of Finance, Ministry of Industry and Trade, etc.) as a basis to accurately update and account for the cost of petroleum business in the formula for determining the basic price of petroleum and biofuel, ensuring effectiveness in operational regulation and price stabilization, harmonizing the interests of the State, enterprises, and the people.

- For head and distributing petroleum traders:

+ Proactively cooperate with relevant authorities to propose mechanisms and policies supporting the development of biofuels, including tax and fee incentives or other forms to reduce production costs and enhance the competitiveness of biofuels, thereby expanding the biofuel consumption market, especially in localities and regions with large consumption potential.

+ Proactively cooperate with People’s Committees and Departments of Industry and Trade in centrally-run provinces/cities to enhance information and communication about the use of E5 RON 92 fuel, affirming its quality and technical standards, to reassure consumers and encourage the community to increase the use of biofuel.

Additionally, the Ministry also requires the Departments of Industry and Trade in provinces and central-affiliated cities to continue enhancing guidance and directing petroleum traders in the area to boost the business of E5 RON 92 fuel, and to compile difficulties and obstacles encountered during the organization of E5 RON 92 fuel business to report to the Ministry of Industry and Trade for timely solutions.

Continue to cooperate with local Departments, Committees, and sectors, as well as petroleum traders in the area, to enhance information dissemination and create social consensus on the use of biofuels in general, and E5 RON 92 fuel in particular, affirming their quality and technical standards, to reassure consumers, thereby encouraging the community to increase the use of biofuel.

More details can be found in Directive 16/CT-BCT dated December 26, 2024.

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