Vietnam: Key traders may decide on wholesale prices of petrol and oil

Currently, petrol and oil is a general term used to refer to products of the crude oil refining process which are used as fuel, including engine petrol, diesel oil, kerosene, fuel oil and jet fuel; bio-fuel and other products used as engine fuel, excluding liquefied gas and compressed natural gas.

In addition to the principle that key traders may decide on wholesale prices of petrol and oil, Decree No. 83/2014/NĐ-CP of Vietnam’s Government also specifies principles of management of petrol and oil sale prices as follows:

- Petrol and oil sale prices are subject to the state-controlled market mechanism.

- Petrol and oil key traders and distributors may adjust petrol and oil retail prices according to the principles and order prescribed in Article 38 of this Decree. Key traders shall participate in valorizing prices in accordance with current laws and may have their reasonable expenses offset by the State when participating in the price valorization.

- The interval between two (2) consecutive price adjustments is at least fifteen (15) days, for price increase, and maximum fifteen (15) days, for price lowering.

- In case the Government does not valorize prices, key traders shall submit to competent state agencies: Price declaration documents and price adjustment decisions.

- Based on price declaration documents or price registration documents and price adjustment decisions submitted by key traders, competent state agencies shall conduct inspection and supervision to ensure that the price adjustment by key traders is compliant with law.

- Based on the socio-economic conditions and global petrol and oil prices in each period, the Government shall decide to:

+ Modify decisions mentioned at Point c, Clause 1; Clause 2; and Clause 3 Article 38 of this Decree;

- Valorize domestic petrol and oil prices and assign the Ministry of Industry and Trade to assume the prime responsibility for, and coordinate with the Ministry of Finance in, applying price valorization measures in the duration of application of price valorization measures.

View more details at Decree No. 83/2014/NĐ-CP of Vietnam’s Government, effective from November 01, 2014.

Thu Ba

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