Sir, do we only see the decree’s inadequacies when the instability in petroleum production and trade occurred in the past?

As a person who has been in the petroleum industry for a long time and has also been a member of the drafting committee since the first prime ministerial decisions like Decree 187 in 2003, then Decree 55, 84, 83, 95 and later, many problems still remain.

This should have been left to the market, but we’ve made the decree tighter and tighter. The opinions of retailers and distributors are only partially reflected, but in reality it is very difficult and there are too many sanctions.

The Ministry of Industry and Trade is currently collecting opinions on the amendment and completion of a number of articles of Decree No. 95/2021/ND-CP and Decree No. 83/2014/ND-CP. What do you think the decree needs to change?

In my opinion, commenting on the decree is not only about money, but also about many restrictions by other sanctions, which retail representatives, dealers and notices do not say everything. The provisions of the decree are also obstacles that create difficulties for companies in the business process.

The Association has sent a document to the Interministerial and Editorial Committee on the organization of amendments to Decrees 95 and 83. I think if we organize the consultation, if we don’t focus on evaluating the decree and evaluating deficiencies and shortcomings in the implementation of the decree, we will not be able to meet the expectations of a proper amendment of the decree.

We have a lot more problems than just inadequate discounting. The stricter the building regulations, the more difficult it becomes for tradespeople from wholesalers to retailers, creating many barriers for businesses. The association believes that we need to change Decree 95 at least 10 articles, including provisions in 2022 that do not exist yet, such as , many points could not be implemented according to the decree.

On January 2, 2022, Decree 95/2021/ND-CP amending and supplementing some articles of Decree 83/2014/ND-CP on trade in petrol and oil entered into force. This decree is the fastest from its appearance to its amendment, the shortest in existence and has so far revealed many shortcomings. This shows that the wording of the decree cannot be based on will.

Regarding rebates, there are still many opinions on the regulation of the minimum rebate rate for gasoline. What is your opinion on this matter?

Rebate is an agreement between a company and another company, not the state, so it cannot be regulated, take from one company, split among other companies, and must ensure sufficient for wholesalers, distributors and retailers. .

Our total requirement is 22 million litres, 70% of which is sold through the retail system, which equates to around 15-16 million litres. Retail stores are the most important points in the organization of circulation.

Failure to charge enough cost to pay the retail discount, failure to agree is due to extreme poverty because the focus store has nothing to spend due to the organization of the pricing formula. Therefore, when calculating gasoline prices, a correct and complete calculation, including circulating reserves, is necessary.

Therefore, it is necessary to take into account and correct the formula for calculating the base price. The Ministry of Industry and Trade and the Ministry of Finance in 2022 have performed all their duties very well according to the provisions of the decree. So the problem lies in the decree, not in the ministries.

The decree stipulates that the core company is obliged to reserve for circulation for 20 days, while gasoline and oil prices change daily, money belongs to the company but is not included in the price, and the price is adjusted every 10 days should not calculate properly, enough, the focus company will lose. This regulation extends throughout from Decree 83 to 84. We always recommend the state regulations for the amount of shares outstanding, then we must calculate the full number of days of this price.

It is possible to adjust the price once every 3 days, 5 days, 7 days, but for each price adjustment, you need to go back 20 days to calculate according to the focus company’s inventory according to the circulation regulations.mandatory. All kinds of costs can be calculated in this way, e.g. B. the company’s circulation costs, etc. If they don’t fully calculate in 20 days, they will lose money and have no money to pay the discount to the retail store.

Why do we always think that the inventory is unknown. Therefore, in this adjustment, I suggest that 7 days is also suitable, but 20 days must be fully calculated from the price. 20 days price will ensure the inventory of the contact point and the remaining costs in circulation.

We set goals for 7 days, 10 days, 15 days of what to do while completely not behaving according to set standards. We’re shrinking from 15 days to 10 days, now it’s only 7 days to approach the world price. When the world price is too high, we use the stabilization fund to push it down to stabilize it, making the market balanced and the price more distorted. If you want to stabilize yourself, the longer the day, the better.

I think that the state should only manage the import prices, announce price components such as world market prices, taxes collected in the state budget, etc., while the companies are responsible for calculating and adding up their own expenses, thereby determining and publishing the final retail price.

Currently, the Treasury uses the companies’ reported costs, but taking the average of companies is not correct as each company has different costs. Just as the average height of the Vietnamese is 1.63 m, if the door is 1.63 m high, the 1.70 m tall person has to bend down. That is, if we don’t add enough, retail isn’t enough, and distributors aren’t enough, leading to complications.

Along with the comments above, I suggest that the editorial board should be quantitative rather than just qualitative. That is, what we define, then apply it in reality like this. For example, if we observe March 2022 and make an adjustment every 7 or 10 days, the world oil price will increase by 29% to 30% in this cycle. Therefore we will adjust the price by up to 30%. The answer is no. So we need to find the root to solve the problem.

Therefore, if companies self-declare their costs, companies will not fall into the state of lack of production and business costs, incur losses, and also secure discounts for retailers. The wording of the decree should try to bring it to the market and put it under the administration of the state.

What is your take on the proposal to allow retailers to import from many sources?

As an agent, there must be a discount, it is determined by negotiation, but very few people sign the agent. However, if a trader takes gasoline from three sources, he is breaking the trade law because, as a broker, he is only a broker of one lane.

Also, the agent must sell at the advertised price. Not to mention if you take 3 sources there are 3 different prices so how to sell very difficult. Whose logo will the agent hang? Therefore, I think that the decree should also be expanded, which is in line with the plan taken from many sources. But that’s how we’re going to develop another new method, which is independent retailers who can carry any brand. This should be left to the company. But starting an independent business is not easy, they have to be responsible for everything from the brand to the quality to the chemical laboratory…

VnEconomy 02/28/2023 08:00

The content of the article was published in Vietnam Economic Review No. 9-2023, issued on February 27, 2023. Welcome readers to read The:

https://postenp.phaha.vn/chi-tiet-toa-soan/tap-chi-king-te-viet-nam