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Saturday, June 15, 2024

NA chairman orders supervision of Nghi Son Refinery’s finance

The Saigon Times

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HCMC – National Assembly (NA) Chairman Vuong Dinh Hue has asked agencies under the NA to supervise the finance of Nghi Son Refinery and Petrochemical LLC and the domestic fuel supply.

Specifically, the NA’s Finance and Budget Committee was assigned to supervise the operation and financial capacity of Nghi Son, the local media reported.

The NA Chairman also asked NA’s agencies to supervise the deployment of the NA’s Resolution 42/2021 which allows the Vietnam Oil and Gas Group to use the after-tax profit to subsidize Nghi Son’s products. The Government must report the subsidy to the NA annually.

The NA’s Finance-Budget and Economic Committees were also asked to keep a close watch on the production and import of fuels to ensure the fuel supply and stabilize the local fuel market.

According to the Ministry of Industry and Trade, Nghi Son refinery’s capacity reduction since mid-January due to its financial difficulties led to a shortage of fuel in the local market.

As of the end of last year, the refinery has supplied 34% of the local fuel demand. Despite multiple incentives, the refinery has incurred a loss of US$3.3 billion since 2018 and owed US$2.8 billion for material imports.

The refinery has been supported to maintain its operations until May-end. At present, it is operating at 60% capacity, which will be raised to 80%-85% in mid-March and 100% in early April.

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