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Wednesday, November 30, 2022

Two oil refineries ordered to ramp up output

The Saigon Times

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HCMC – The Ministry of Industry and Trade has ordered the nation’s two oil refineries, Dung Quat and Nghi Son, to boost production to increase fuel supplies amid the ongoing gasoline shortage.

The two oil refineries, which are responsible for 70% of the country’s fuel market, got the order from the ministry on October 13. They must ensure adequate fuel supply for the domestic market, the local media reported.

Tran Duy Dong, head of the Domestic Markets Department at the ministry, attributed the recent fuel retail disruptions to the refineries’ gasoline production cuts.

As such, the ministry asked the two oil refineries to operate at full capacity.

The ministry also ordered swift deliveries to retailers whose purchase contracts had earlier been signed, asking the two refineries to use their reserves to supply fuel wholesalers to ease the fuel shortage in some southern provinces, especially HCMC.

According to the Vietnam Oil and Gas Group (PVN), the two oil refineries are set to produce 4.4 million cubic meters of fuel in the fourth quarter of 2022, accounting for 80% of the nation’s consumption demand. The Dung Quat oil refinery is expected to operate at 105% capacity for the rest of the year, while Nghi Son has been operating at full capacity since April after its production cuts in early 2022.

At a meeting held by the steering committee on price management yesterday, October 13, the Ministry of Finance forecast that fuel prices would continue to fluctuate strongly.

Deputy Prime Minister Le Minh Khai, head of the steering committee, urged the Ministry of Industry and Trade to take prompt measures to stabilize the fuel system.

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