Discharge funds, reduce taxes: So that gasoline does not cut off its source, does not increase shock prices

Petrol volatility: Discharge funds, reduce taxes to control

In a report sent to the National Assembly Standing Committee, the Ministry of Industry and Trade said that gasoline prices in Vietnam increased, but were operated at a much lower level than the increase of the world market. Specifically, the average price of a number of world petroleum products (traded on the Singapore market) used to calculate the base price for the operating period on March 11, 2022 compared to the beginning of 2022, fluctuated up from 44, 01% to 60.02%, but the domestic gasoline price in the operating period on March 11, 2022 compared to the beginning of 2022 only increased from 24.91% to 39.56%.

After 10 years of increasing, for the first time reducing environmental tax on gasoline

In the country, from the operating period gasoline prices From the beginning of 2022 (January 11, 2022) to the March 11, 2022 operating period, there have been 06 price management periods (six periods of which have increased prices).

Petrol prices of all kinds up to the operating period on March 11, 2022 compared to the operating period on January 11, 2022 increased from 4,625 – 7,030 VND/liter/kg (depending on the type of petrol), equivalent to an increase from 24.91 % – 39.56%.

In order to control the price increase of gasoline, the Ministry of Industry and Trade – the Ministry of Finance has continuously used the Petroleum Price Stabilization Fund with a spending rate of 100 – 1,500 VND/liter depending on the type), helping the price increase to be lower than the price. petroleum on the world market.

The management of petrol and oil prices through the use of the Price Stabilization Fund tool is intended to contribute to ensuring the achievement of the goal of controlling inflation and stabilizing the market from the beginning of 2022, supporting people and businesses in the process. restore production and business activities…

In addition, on the basis of the proposal of the Ministry of Finance, opinions of the Ministry of Industry and Trade and other ministries, the Government has issued Resolution No. 31 approving the project Resolution of the National Assembly Standing Committee on the insurance tax rate. environmental protection for gasoline, oil and grease until the end of December 31, 2022.

Accordingly, the Government proposed the National Assembly Standing Committee to reduce the environmental protection tax rate for gasoline to 2,000 VND/liter; diesel, fuel oil, lubricating oil is 1,000 VND/liter; grease is 1,000 VND/kg; kerosene is 700 VND/liter. At the same time, the Ministry of Finance proposed that the resolution take effect from April 1, 2022 to the end of December 31, 2022.

In order to ensure supply and demand and stabilize the petroleum market in the coming time, the Ministry of Industry and Trade has and will continue to implement a number of solutions such as: Directing key petroleum trading enterprises to implement the total distribution plan. Additional sources and minimum import quotas were assigned by the Ministry of Industry and Trade in the second quarter to ensure a continuous supply of petroleum for the domestic market to serve production, business and consumption of people and businesses. Karma.

Mr. Nguyen Bich Lam, former General Director of the General Statistics Office, said that over the past time, the two ministries of Industry and Trade and Finance have made good use of the petrol and oil price stabilization fund to control petrol and oil prices. But in the context of rising gasoline and oil prices, the fund for stabilizing gasoline and oil prices is also limited, so should we consider other solutions and tools to coordinate and control gasoline and oil prices, so as not to spike? , avoid harming the economy.

According to Mr. Nguyen Bich Lam, currently, 40% of petrol price structure is from taxes and fees. Accordingly, in order to regulate the increase of gasoline and oil prices in a suitable and reasonable manner, special consumption tax reduction and environmental protection should be considered. Along with that, currently, VAT is reduced by 2% for consumer goods, but gasoline and oil are not. That shows, we still have a lot of room to reduce gasoline and oil prices, gasoline and oil prices are still increasing but not too high compared to world gasoline and oil prices.

“However, reducing the price of gasoline will reduce inflationary pressure, but if it is reduced too much, it will lose budget revenue, so adjusting tax policy needs a comprehensive assessment and calculation”, Mr. Lam Luu said. idea.

Securing petroleum supply is a top priority

Calculation to ensure supply

Currently, ensuring the supply of petroleum is the most important task. Factory Nghi Son Refinery and Petrochemical There is still no plan to deliver goods to key traders in April and May, especially after May, and it is unclear about the factory’s ability to maintain production.

Therefore, on February 22, 2022, the Ministry of Industry and Trade worked with the Vietnam Oil and Gas Group to assess the current situation of petroleum production and supply capacity of Nghi Son Refinery and agreed in the immediate future, The scenario for managing petroleum supply in the second quarter of 2022 for the domestic market does not include the supply from Nghi Son Refinery.

Accordingly, on February 24, 2022, the Ministry of Industry and Trade issued Decision No. 242/QD-BCT assigning additional import quotas to 10 petrol and oil key traders to make up for the shortfall in supply from domestic production (excluding supply from Nghi Son Oil Refinery) to ensure sufficient petroleum supply for the domestic market in the second quarter of 2022.

Delegate Hoang Van Cuong, member of the Finance – Budget Committee of the National Assembly, said that petrol is a price stabilizing commodity and is managed by the State. Therefore, the management of the Ministry of Industry and Trade is very important. The Ministry of Industry and Trade needs to control both supply and reserves to ensure proactive domestic supply. At the same time, in price management, it is necessary to be flexible so that when gasoline prices fall, an additional deduction will be added to the Price Stabilization Fund, and when gasoline prices increase, the Stabilization Fund must be used to compensate for gasoline prices. It is necessary to manage the reserve level, control the reserves of the suppliers so that there is no situation where the supplier hoards goods, speculates on goods, does not put gasoline on sale, and waits for the price to increase in the future.

Delegate Hoang Van Cuong also said that it is necessary to increase import supply and encourage businesses by reducing import taxes. In the long term, it is necessary to create a better competitive market so that petroleum distributors can compete and find the best source for themselves. National reserves must also increase resources to increase domestic petroleum reserves as some countries store petroleum for about 5-6 months to ensure stability.

Delegate Hoang Van Cuong believes that, with the combination of the above measures, it will be possible to ensure the stability of gasoline prices in the coming time, helping the economy to have conditions for stability, recovery and development.

Ha Duy