“From now until the end of the year, we will enjoy a discount on gasoline prices”

According to the Ministry of Industry and Trade, the reduction of domestic gasoline prices depends largely on fluctuations in the world market.

On the afternoon of April 29, at the Government’s regular press conference in April 2022, the Deputy Minister of Industry and Trade answered questions related to the market and petroleum reserves.

Accordingly, regarding the question of petroleum supply, Deputy Minister of Industry and Trade Do Thang Hai said that the energy issue has a disturbance that affects the political situation and tensions between Russia and Ukraine.

In Vietnam at present, the supply from water from 2 refineries and petrochemical plants Nghi Son and Binh Son is 70-75%; imports account for 20-25%.

However, the domestic petroleum market in the first quarter had many fluctuations due to the supply from Nghi Son refinery, which accounts for 35-45% of the market share, with a sharp decrease in capacity in January and early February. reduce capacity up to 55%, even with production downtime.

Meanwhile, the import supply situation is difficult due to the political situation, rising prices, logistics costs and limited supply and increased freight rates.

“The Prime Minister has asked the Ministry of Industry and Trade and the Ministry of Finance to proactively import and consider reducing the capacity of Nghi Son refinery and petrochemical plant. Therefore, the first quarter still ensures supply for production and business,” said Mr. Hai. said.

The Deputy Minister of Industry and Trade also said that in the second quarter, the Nghi Son factory will be reviewed, and the Ministry of Industry and Trade has issued Regulation No. 242 dated February 24, 2022 on the allocation of additional import of petroleum in the quarter. II for 10 petrol stations to supplement the shortage of petroleum at Nghi Son refinery and petrochemical plant. In the second quarter, excluding the source from Nghi Son oil refinery, there is still enough gasoline to supply.

For the third and fourth quarters, the Ministry of Industry and Trade has worked with Nghi Son Refinery and Petrochemical Plant and based on this factory’s commitment, it will give priority to domestic supply. The rest will be assigned to 10 trading points of imported petroleum.

Regarding petrol price management, Deputy Minister of Industry and Trade said that it still depends on Decree 83 and Decree 95 of the Government. As for the solution to reduce gasoline prices, the calculation formula depends on world prices. In the past time, the Inter-Ministry of Finance – Industry and Trade used the petrol price stabilization fund (BOG), so even though the world price increased, Vietnam’s increase was still low compared to the world price.

“Recently, the National Assembly has issued a resolution on reducing environmental tax on gasoline. From now until the end of the year, consumers as well as businesses will enjoy a reduction in petrol prices,” said Mr. Hai.

Currently, the Ministry of Industry, Trade and Finance is studying policies to reduce taxes which are appropriate to prevent smuggling of petroleum to countries near Vietnam.

Regarding petrol and oil reserves, according to Mr. Hai, for petrol and oil hubs, reserve 20 days in warehouses; Suppliers should reserve 5 days. State reserves due to limited capacity and budget, the Ministry of Industry and Trade and Finance will discuss with ministries and sectors to propose solutions suitable to the actual situation of Vietnam to ensure maximum reserve situation.