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Sunday, June 23, 2024

Nghi Son refinery’s supply not included in fuel supply plan in Q2

The Saigon Times

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HCMC – The fuel supply plan for the local market in the second quarter of the year will not include the volume supplied by the Nghi Son Refinery and Petrochemical LLC but mainly from imports, according to the Ministry of Industry and Trade.

In a report sent to the National Assembly deputies, the ministry stated that the Nghi Son refinery had been facing financial difficulties, so it cannot import enough crude oil for production, resulting in a shortage of fuel in the local market, the local media reported.

Therefore, since mid-January, the refinery had scaled down production from 100% of capacity to 80% and then 55%-60%.

According to the Ministry of Industry and Trade, the refinery’s volume of fuels delivered to traders in February fell 50% over the plan.

Nghi Son was expected to hand over 739,900 cubic meters but supplied 365,200 cubic meters. Of the total, the supplied volumes of gasoline and diesel oil plunged 40% and 58%, respectively.

In March, the refinery will supply 556,000 cubic meters out of the planned volume of 680,000 cubic meters.

As soon as Nghi Son reduced its capacity, the Ministry of Industry and Trade asked fuel traders to increase fuel imports and tap the fuel reserves.

Therefore, the fuel supply met the demand in February. In March, despite a 20% supply fall, the fuel supply was ensured thanks to fuel inventories.

Nghi Son Refinery and Petrochemical LLC has yet to announce a fuel supply plan for April and May and its plan to resume its operations after May is unknown.

Therefore, after working with the Vietnam Oil and Gas Group to assess Nghi Son’s fuel production and supply capacity, the Ministry of Industry and Trade has excluded the refinery’s supply in the fuel supply plan next quarter and will increase the fuel import quotas for 10 traders to ensure fuel supply for the local market.

As for the fuel price regulation, the ministry stated that the local fuel prices increased 24.91%-39.56%, lower than the global fuel price hike, at 44.01%-60.02%.

The ministry will ask fuel traders to import fuel as planned, regulate local fuel prices in line with global prices and domestic demand and enhance inspections into the fuel trade.

However, the ministry also asked banks to raise credit lines for fuel traders to promptly import fuel. Nghi Son Refinery and Petrochemical LLC must quickly resolve its problems and announce its supply plan.

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