In Decision No. 128 just issued, the Ministry of Industry and Trade has designated 6 entities whose certificates of entitlement as petrol and oil distributors have been revoked.
Specifically: Golden Lotus Petroleum One Member Limited Liability Company (Can Tho), Dai Long Petroleum Trading Joint Stock Company (Hanoi), Quang Ha Construction Trading and Transport Company Limited (Ha Tinh), Company An Huu Petroleum Joint Stock Company (Tra Vinh) , Rong Vang Petroleum Joint Stock Company (Hanoi), Petro Oil An Giang Trading Service Company Limited.
These decisions come into effect on February 27. By March 15, 2023, the six above-mentioned companies must submit the certificate of authorization as a mineral oil and mineral oil distributor.
6 units will have their gasoline and oil business licenses revoked before March 15, 2023. Picture: Kien Trung.
According to the Ministry of Industry and Trade, there are now more than 300 distributors. At the end of 2022, the regulatory body of the Ministry of Industry and Trade proposed the Domestic Market Department to review, summarize, report and propose to the relevant authorities the key trader’s petroleum import and export business licenses and certificate Authorization to sell petroleum and petroleum issued, but does not meet the requirements for trading in mineral oil and mineral oil.
The Ministry of Industry and Trade is also amending Decree 83 and Decree 95 on petrol and oil trade.
It changes the content of the rights and obligations of gasoline and oil distributors in the following direction: to buy gasoline and oil from 3 gasoline and oil trading centers under the gasoline and oil purchase and sale contract. The leading gasoline and oil trader is required to update and report information and data in the database system on the management and administration of the national petroleum business in accordance with the Department of Industry and Trade guidelines.
According to Decree 95, one of the conditions to obtain a certificate as a dealer is to have a warehouse or tank with a minimum capacity of 2,000 m3, owned by a company or leased for use by a petrol dealer for 5 years or more.
In addition, a gasoline and oil distribution system in the area of two or more provinces or centrally-run cities is required, including at least 5 owned or leased gasoline and oil retail stores with lease terms of 5 years or more 5 or more, including at least three 3 owned stores; At least 10 gasoline and oil retail stores owned by franchisees or gasoline and oil retail dealers must obtain a gasoline and oil retail credential.
Detection of violations, but no recommendation for action
In late 2022, the Inspectorate of the Ministry of Industry and Trade announced Inspection Conclusion No. 8146 of 11 petroleum wholesalers, which pointed to many regulatory violations in the petroleum business in the southern region.
The companies inspected include: Vietnam Oil Corporation (PVOil); Dong Phuong Petroleum Joint Stock Company; Long Hung Trading and Service Company Limited; City Petroleum One Member Limited Liability Company. Ho Chi Minh City; Joint Stock Company of Duong Dong Group; Nam Phuc Investment Joint Stock Company; Tin Nghia Petroleum Import-Export Company; Thanh Le Import-Export Corporation; Hung Hau Petroleum Company Limited; Nam Song Hau Gas Investment and Trading Joint Stock Company; Dong Thap Petroleum Trading Joint Stock Company.
At the time of the inspection, several companies reported that the petroleum storage did not correspond to reality. Some petrol and oil retail outlets subject to the key dealer system have petrol and oil retail entitlement certificates that have expired or have not been reissued but are still registered in the system, and the sales organization is in violation of the provisions of the decree 99/ 2020/ND-CP.
Some petroleum wholesalers have changed the number of their agents and franchisees but have not reported to state administrative agencies.
Some units in the Ministry of Industry and Trade with the role of state administration did not check, compare and verify these reports in a timely manner; Delays in detecting violations, propose competent persons for sanctioning administrative violations and apply prescribed penalties.