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Thursday, October 6, 2022

Fuel retailers make urgent proposals to authorities 

The Saigon Times

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HCMC – Twenty-five petrol retail enterprises on August 29 have written to the Ministry of Industry and Trade and other relevant authorities proposing addressing inadequate issues in their recent business operations.

The document comprises proposals for a commission increase, removal of contributions to the petrol price stabilization fund, a price regulation within 24 hours and the permanent withdrawal of licenses of major enterprises that fail to comply with provisions on energy security, among others.

One of their concerns is the contributions to the petrol price stabilization fund made by retail enterprises as they are doubtful about the fund’s suitability with the Government’s intentions and its usefulness to society.

Representatives of retail enterprises sought to know why petrol retail enterprises facing consecutive losses are not allowed to cease their business operations and also received no support from the Government.

With a zero commission or a VND200 commission per liter paid by the major enterprises, petrol agents can hardly maintain their business operations, apart from the limited supply. In the meantime, the petrol retail enterprises incur lots of operational expenses for locations, logistics, transportation, employees, utilities supply, etc., the document said.

Despite heavy losses, they have to manage their business due to a regulation stating that their business licenses will be revoked permanently if they shut down.

To address the above issues, petrol agents proposed the Government remove contributions to the stabilization fund due to its negative impact on price regulation.

The Government should also provide financial support for the import of petrol to ensure energy security and allocate petrol for storage in major tanks to avoid a partial petroleum shortage as in the current situation.

In addition, the Government should permanently revoke the business licenses of major enterprises that fail to comply with provisions of energy security.

The commission paid by the major petrol enterprises should increase, at least VND600-800 per liter, for the petrol retail stations to maintain their operations. Besides, the time-limit of the price regulation should be shortened to 24 hours, including weekends and public holidays.

The petrol retail enterprises also proposed they should be allowed to sign contracts with different major petrol enterprises instead of only one major enterprise to increase their competitiveness and ensure the petroleum supply.

Despite the scale of business, whether a large or a small and medium-sized enterprise, they should receive equal treatment from the Government to ensure healthy competition in a market economy, said a representative of a petrol retail enterprise.

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