Petroleum-related information at the group discussion on the results of the implementation of the socio-economic development plan in 2022 at the 4th session of the 15th National Assembly, Minister of Industry and Commerce Nguyen Hong Dien said there was a shortage of petroleum-related information The domestic oil supply is completely imprecise and the Ministry has detailed data and estimates.

NEVER FUEL SUPPLY

The minister said that the whole world is facing many difficulties on energy issues, prices are high and there are no goods to buy. 5 days ago I was sent to participate in an energy forum with Russian partners, the Russian Ministry of Economy.

Russia owns a large volume of oil, accounting for 30-35% of world oil, Russia faces difficulties in selling petroleum and gas products, the retail price of Russia is 58-60 Rs/liter, compared to USD it is 1-1 .2 USD (equivalent to over 30,000 VND/litre). Meanwhile, in Vietnam, it remains on the threshold of VND 21,000-25,000/litre, currently around VND 23,000/litre.

According to the Minister, because of the influence of the world situation, the volatility of gasoline prices is very high, we adjust the domestic gasoline price according to the regulations, and increase and decrease according to the evolution of gasoline prices. For gasoline, prices have steadily decreased for 10 consecutive periods of operation, but at that point they began to increase. Naturally, oil companies that imported at high prices but sold at low prices in the previous period suffered losses.

Explanation of the problem: Why is the supply of petrol guaranteed, but many petrol stations are closed? The Minister of Industry and Trade reiterated that Vietnam has never had a shortage in terms of supply, up to this point the public opinion is that the lack of domestic supply is completely wrong. We have a very detailed basis, data, tests and reviews.

“We have a market management force, and the Ministry of Industry and Commerce controls each area to know the quantity of goods. As of 09/30/2022, we still have commercial reserves (unused national reserves) of 1,255 million m3, which guarantees the production capacity of the two factories Binh Son and Nghi Son in October and provides 80% of the domestic supply with 1.3 million m3/month safe,” the minister said.

According to the allocation plan, 34 key companies need to import 500,000 m3 in October, so there are more than 3 million m3 at the end of September and mid-October, which fully cover the supply until mid-October 11. During November , continue to produce and import pillows.

“Obviously supply is not scarce, but selling in the market is difficult. Many companies imported a relatively large volume at high prices in the previous period, after which the domestic price of gasoline (which follows the trend of fluctuations in world market prices) has steadily decreased, resulting in losses that have already been lost do not dare. In addition, a number of costs and their norms were not adjusted in a timely manner and to reality. From the normal profit, business expenses, the cost of transporting gasoline and oil from abroad to Vietnam, and the cost of transporting gasoline and oil from the factory to the warehouse of the focus company, the distributor is insufficient,” the head of the ministry stressed .

LOSING A BUSINESS NO ONE WANTS TO BE A MOTHER

Minister Nguyen Hong Dien explained the reason why the petrol and oil retail store closures are only concentrated in Ho Chi Minh City and the southern provinces, but not nationwide, saying there are three main reasons.

The first, There is a significant amount of floating petroleum in this area, including smuggled and counterfeit petrol. As August showed, we continued to arrest and solve cases of counterfeiting of several hundred million liters of gasoline. This is just a floating iceberg, and how far it sinks will take time to unravel.

“When there is such a fluctuating amount of petroleum, business people in this field don’t care much about the standard cost, rebates, and even registering a central entity or dealer to buy it. So far we have controlled counterfeit petrol and tightened up petrol smuggling, leaving only official petrol. But official gasoline prices fluctuate constantly, low discount. People who earn a lot of money now earn little money, even at a loss, nobody wants that,” analyzed the minister.

MondayRecently, the hurricane surrounding securities and real estate also had a certain impact. According to the minister, not everyone has noticed that there are a number of petroleum trading companies that are more or less active in real estate and securities. Recently, this field has been volatile, so the source of money has also been reduced. So when it comes to the entry period (high entry, low sell context), people are out of money and not attractive.

In addition to the credit space, when a licensed company is a port of call or a dealer, the bank grants a credit space or loan, but since the space is regulated in advance, the price of gasoline was previously only 50-60 USD/barrel, but now it is Price high, sometimes even more than 2 times, but the credit line is still the same, even established companies cannot afford to import, let alone the “left” companies.” This combination is also a reason to mention.

TuesdayPreviously, in the business system in each region, companies had to procure many sources and sign with many key companies at the same time, but after signing, they did not buy goods, leading to the story that he signed with many companies How many days and months do not buy from other people, the leading company has the right to refuse.

Petrolimex is never short of stock, but they must prioritize securing their own systems and distributors with stable sales contracts with others. In principle, in resolving this matter, it is still necessary to comply with the law, all transactions that violate the provisions of the law must be handled.

The minister added that Decree 95/2021/ND-CP amending Decree 83/2014/ND-CP on Petroleum Trade is in force, but recently uncovered a number of restrictions imposed by the Ministry of Industry and Commerce Thuong tasked with investigating, along with ministries and sectors, to consider and propose changes.

EFFICIENT NEW sync management

In the stewardship of petroleum products, public opinion questions responsibility. According to Minister Nguyen Hong Dien, oil is a strategic asset. In addition to the Ministry of Industry and Commerce, there are currently 6 ministries and sectors under the same leadership.

The Ministry of Industry and Trade is the agency charged with ensuring supply, ie bringing oil to the market and managing the distribution system from wholesalers to distributors.

Taxes, normative expenses, gasoline and oil trading expenses … in the price of gasoline are the Treasury; The Ministry of Transport ensures the distribution of this article; Petroleum Quality Management is the Ministry of Science and Technology; Environmental management is the Department of Natural Resources and Environment; This responsibility is also transferred to the municipalities.

In addition, there is the State Bank of Vietnam, which acts as an agency to provide lines of credit and sources of foreign exchange to help businesses reduce financial costs, increase resources to import and purchase gasoline from domestic water supplies, and ensure the supply of oil the market…

There are 4 classes in the petroleum business system: importer (ie wholesaler) – distributor (company that buys petrol from a central location) – general agent/agent – retailer.

According to the minister, there are currently around 17,000 shops at the level of general agent/representative and retail business. This is a system licensed and overseen by provincial and city authorities. Therefore, in distribution, in addition to the control and regulation of key companies, it is necessary for the municipalities to control and manage and handle these two levels. Only then is it synchronized and effective.