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Saturday, May 18, 2024

Fuel retailers seek Government assistance again

The Saigon Times

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HCMC – Fuel retailers are seeking assistance from the Government and the Ministry of Finance due to a significant reduction in commissions provided by major fuel trading companies.

On behalf of multiple fuel retailers, Giang Chan Tay, director of Boi Ngoc LLC in Tra Vinh, wrote to Prime Minister Pham Minh Chinh on October 27 presenting the financial difficulties they are facing as a result of major fuel trading companies offering no commission.

Fuel retailers are burdened with covering expenses for electricity, water, salaries, losses, repairs, and loan interest but have no commission, he argued.

According to Decree 95 and Circular 104 of the Ministry of Finance, fixed costs in gasoline and oil trading include all expenses which are used to determine the base price of fuel, including both wholesale and retail components.

However, the current regulations lack clarity regarding how these costs should be distributed. This has led to a situation where retail businesses often receive reduced commissions or even no commissions at all, Tay explained.

Last year, many fuel retailers sought the Prime Minister’s help and the involvement of relevant ministries in amending Decree 83/2014 and Decree 95/2021. They recommended that the Government set specific ratios for fixed business costs and minimum commissions for fuel retailers.

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