HCMC – Minister of Industry and Trade Nguyen Hong Dien presented multiple solutions to avoid fuel supply deficit and prevent gas stations from shutting down amid global fuel market volatility and rising prices of oil and gasoline, heard an online meeting on February 9.
In addition, domestic fuel supply has been affected as Nghi Son Refinery and Petrochemical LLC cut the output of its refinery due to its financial burden, forcing the country to take action to prevent a potential shortage of oil and gasoline.
Speaking at the meeting, Tran Duy Dong, head of the Domestic Market Department under the ministry, said that with consumption of 1.8-2 million cubic meters of fuel per month, the current supply can basically meet the market demand in February. However, from March onward, the supply is expected to wane, while oil and petrol inventories will be lower than usual.
Minister Dien told the provincial and municipal governments to ask grassroots authorities and oil and gasoline suppliers to ensure a sufficient supply of fuel.
The minister also ordered the Departments of Industry and Trade of provinces and cities to work with market managerial forces to conduct unannounced check and general inspection into filling stations and fuel retailers to promptly discover illegal trading.
In addition, the minister asked the Domestic Market Department to review and check the fuel supply of oil and petrol wholesale distributors and ask these suppliers to strictly comply with regulations on fuel trading and plan to regularly stock inventories from domestic and international manufacturers.
Besides, the department was tasked with collaborating with the Price Management Department under the Ministry of Finance to manage oil and petrol prices to stabilize the local fuel market.
The minister told the Import-Export Department to adjust import quotas for fuel importers and specify the process of fuel import in details in line with the prevailing regulations.
Furthermore, the minister asked the Commission for the Management of State Capital at Enterprises and the Vietnam National Oil and Gas Group to urgently negotiate with foreign stakeholders to restructure Nghi Son Refinery and Petrochemical LLC to maintain its operations to ensure the domestic fuel supply. Nghi Son Refinery supplies some 35% of the local fuel demand and is the largest supplier for many local fuel traders.
Apart from this, the commission and group were told to direct Binh Son Refinery to ramp up its capacity to increase the supply of finished oil and petrol to the market, the local media reported.
Also, the minister proposed the Government allow the Ministry of Industry and Trade to flexibly regulate fuel prices to ensure that domestic fuel prices follow global oil and gasoline price changes and encourage fuel traders to import oil and petrol to address a potential shortage of fuel supply in the country.
The ministry also proposed allowing it to tap the national oil and gas reserves to provide local consumers if necessary.