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Monday, June 17, 2024

Ministry of Finance seeks to drop fuel price stabilization fund

By Van Phong

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HCMC – The Ministry of Finance said it was high time to consider eliminating the fuel price stabilization fund to let market supply and demand to decide gasoline prices.

In the draft amended Law on Prices, the Ministry of Finance 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.

According to the Ministry of Finance, the fuel price stabilization fund is a special fund that was established before the Law on Prices came out.

However, with an increasing number of firms operating in the distribution system, the domestic fuel market has seen positive developments, which have in turn boosted efficiency and fostered competition. 

In addition, the consumer behavior has gradually acclimated to fluctuations in global gasoline prices.

The Ministry of Industry and Trade stated that it will examine the proposal further. The fuel price stabilization fund, according to the ministry, has played a significant role in controlling and regulating domestic gasoline prices. 

The Ministry of Finance said that the updated measures would ensure price stability in practice when commodities and services face volatility owing to the cost-push inflation and a supply-demand imbalance.

The Vietnam Petroleum Association urged against implementing the wholesale price declaration to the petroleum business and against declaring the costs of oil and gasoline from foreign producers as well as the grounds for adjusting selling prices between declarations.

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