Expenditure of petrol price stabilization fund under the new regulations in Vietnam

Expenditure of petrol price stabilization fund under the new regulations in Vietnam

According to Article 5 of Circular 103/2021/TT-BTC of Vietnam, the expenditure and use of the petrol and oil price stabilization fund shall be made concurrently with the petrol and oil price management period specified in Clause 27, Article 1 of Decree 95/2021/ND- CP, specifically:

- The time to administer gasoline prices is on the 1st, 11th, and 21st of every month.

- For operating periods that coincide with a holiday or public holiday under the regulations of the State of Vietnam, the operating time is postponed to the next working day after the holiday or public holiday.

- For the operating period that coincides with the Lunar New Year, the operating time is postponed to the next operating period.

The level of expenditure of the Petroleum Price Stabilization Fund is flexibly adjusted, in line with the reality and the balance of the Price Stabilization Fund at the time of petrol and oil price regulation as follows:

- Do not use the Petroleum Price Stabilization Fund in case the elements constituting the base price of petrol and oil in the announced period increase by less than seven percent (<7%) compared to the base price of petrol and oil announced in the preceding period, except the increase in petrol and oil prices affects socio-economic development and people's lives.

- In case the elements constituting the base price of petrol and oil in the announced period increase from seven percent (≥ 7%) to ten percent (≤10%) compared to the base price of petrol and oil announced in the preceding period, after when reaching an agreement with the Ministry of Finance, the Ministry of Industry and Trade of Vietnam shall decide on the level of expenditure to use the petrol and oil price stabilization fund to suit the market's movements;

In case the Ministry of Industry and Trade and the Ministry of Finance have different opinions, the Ministry of Industry and Trade shall decide to apply.

- In case the elements constituting the base price of petrol and oil are announced by more than ten percent (> 10%) compared to the base price announced in the preceding period, or the increase in petrol and oil prices affects the economic development of the country. The Ministry of Industry and Trade of Vietnam shall assume the prime responsibility for, and coordinate with the Ministry of Finance reporting to the Prime Minister of Vietnam for consideration and direction.

Total expenditures for the use of the petrol and oil price stabilization fund in the period of the leading petrol and oil trader are determined by:

The level of expenditure for the use of the petrol and oil price stabilization fund is specified in the notice on petrol and oil price management issued by the Ministry of Industry and Trade of Vietnam (x) with the actual temperature of gasoline and oil output consumed in the domestic market during the period. of the main trader of petroleum.

The setting up and expenditure for the use of the petrol and oil price stabilization fund is only made once for the first petrol and oil trader to sell per liter, kg of petrol and oil at the actual consumption temperature at the local market during the time of setting up and spending the petrol and oil price stabilization fund according to regulations.

At the prescribed petrol and oil price management period, in case the total balance of the Petroleum Price Stabilization Fund (estimated number) of the leading petrol and oil traders is greater than or equal to seven trillion dong (≥ 7,000 billion dong), the Ministry of Industry and Trade of Vietnam considers, reduces the amount of deduction or suspends the setting up of the petrol and oil price stabilization fund.

Circular 103/2021/TT-BTC of Vietnam takes effect from January 2, 2022.

Bao Ngoc

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