Obligatory petroleum reserves in Vietnam: Who needs to do it and for how long?

Some subjects are obliged to reserve petrol and oil in Vietnam. So who must reserve petroleum and how long is the reserve period?

Obligatory petroleum reserves in Vietnam: Who needs to do it and for how long? (Illustration)

1. Subjects obliged to reserve petrol and oil in Vietnam

- Compulsory to reserve petrol and oil are key traders.

- National petrol and oil reserves must comply with the law on national reserves.

Major traders in Vietnam include:

Major petrol and oil traders are traders that purchase petrol and oil directly from the refineries (or from enterprises that have contracts to exclusively purchase all petrol and oil products from the refineries that do not sell petrol and oil products themselves) or import petrol and oil to supply petrol and oil for their own systems, sell to other petrol and oil traders or export.

Enterprises that have contracts to exclusively purchase all petrol and oil products from the refineries are entitled to export, import petrol and oil products to maintain supply of petrol and oil for major petrol and oil  traders as instructed by the Ministry of Industry and Trade.

Major petrol and oil producers are those that carry out the process of distillation and refining of crude oil, petrol and oil products, petroleum semi-products, wastes and other materials into petrol and oil products."

2. Obligatory petroleum reserve periods in Vietnam

- From October 01, 2014, the major petrol and oil trader and producer that has petrol and oil distribution systems shall maintain a stable mandatory petrol and oil reserve which is equal to 20 days' supply according to average daily domestic consumption of the preceding year, including category proportions; including reserve for national energy security and mandatory circulation reserve.

- From October 01, 2014, the petrol and oil distributor shall maintain a stable mandatory petrol and oil reserve which is equal to 05 days' supply according to average daily domestic consumption of the preceding year, including category proportions.

- From October 01, 2014, the major petrol and oil trader producer shall maintain a stable mandatory petrol and oil reserve in accordance with applicable regulations on petrol and oil reserves.

- The use of petrol and oil from mandatory reserves shall comply with regulations of law on national reserves and/or regulations of the Ministry of Industry and Trade in order to maintain balance between supply and demand, stabilize the market when necessary.

(Articles 30, 31 of Decree 83/2014/ND-CP, Clause 23, Article 1 of Decree 95/2021/ND-CP)

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