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Thursday, September 29, 2022

Fuel price stabilization fund still needed

By D.H

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HCMC – A majority of the members of the National Assembly’s Finance and Budget Committee have agreed to maintain the fuel price stabilization fund during a session on the revised draft law on prices.

Minister of Finance Ho Duc Phoc, authorized by the Prime Minister to deliver a Government report at the session, said the draft law on prices would have some additional regulations and a separate article about the price stabilization fund.

The Government said that the fuel price stabilization fund was not an administrative intervention but an economic measure to control and regulate fuel prices nationwide.

When fuel prices worldwide fluctuate sharply, the fund will play the role of a regulator to reduce the frequency and level of price adjustments, contributing to reducing inflation, the fluctuation of prices and negative impacts on businesses.

Vietnam’s fuel market has yet to run in compliance with the world market and requires regulation from the Government, according to the chairman of the Finance and Budget Committee, Nguyen Phu Cuong.

He said it is not the right time to eliminate the fuel price stabilization fund, especially when the world’s fuel prices are still volatile.

Previously, many enterprises and experts proposed dropping the regulation on the establishment and usage of the fuel price stabilization fund, as it is no longer in line with the current price management and regulatory practices.

They suggested using other measures like taxes and supporting those negatively affected by the price surges.

Chairman of the National Assembly Vuong Dinh Hue required the Government to assess the impact of maintaining the price stabilization fund as it is a controversial issue.

According to statistics from the Ministry of Finance, the fuel price stabilization fund has received over VND1 trillion from April until the end of June this year. The total use of the fund during this period reached over VND526 billion.

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