HCMC – The Ministry of Industry and Trade (MoIT) has suggested that fuel businesses should be authorized to set their own retail prices.
This proposal, detailed in the third draft of a Government decree on fuel trading, has been sent to the Ministry of Justice for feedback, according to the Vietnam News Agency.
Under the proposal, businesses would be allowed to determine retail fuel prices using reference prices provided by relevant authorities. These reference prices, based on weekly global price updates, include fixed costs such as exchange rates, taxes (special consumption tax, VAT, import tax), and other charges.
Major fuel traders must inform the regulator of their prices for monitoring purposes. Retail prices cannot exceed these reference prices, except for a 2% allowance in remote, isolated, and island areas.
The ministry highlighted that the current pricing system involves state intervention, which limits businesses’ leeway to set retail prices based on their operations. In cases of market fluctuations or emergencies like natural disasters or pandemics, the ministry and relevant authorities will promptly report to the government to decide on measures concerning the Fuel Price Stabilization Fund.
Major fuel traders can lease storage facilities if they meet set standards. Violations will be penalized to prevent misconduct and profiteering. Additionally, fuel distributors are prohibited from engaging in cross-buying to avoid unnecessary costs and complications in controlling fuel supply management.
