A gas station closed down in Phu Hoa district in the southern province of Phu Yen. (Photo: VNA)MoF said it gave the green light for two price adjustments sincethe beginning of October to raise petrol prices by 350 VND per litre andtransport costs by 290 VND on October 7.
However, MoF said it has not been able to meet MoIT's demand asthe latter failed to send a cost report to justify further adjustments. As soonas such information becomes available, MoF, upon completion of their own duediligence research, both on the books and on-site, will make the finaldecision.
Furthermore, MoF said it stands by the decision to stop all petroltraders, who have not met their financial duties to the State and otherrequirements per current regulations, from clearing customs for their cargo.The General Department of Vietnam Customs has received instruction to work24/7, national holidays included, to help traders once all said duties andrequirements are met.
According to MoF, of the four traders who were reportedly notallowed to clear customs, the Xuyen Viet Oil Travel and Transport Trading Co.Ltd have accumulated more than 684 billion VND (27.5 million USD) in importduties. A decision made earlier to stop this company's operation is legaland in accordance with the country's tax regulations.
Another company, the NSH Petro Co. Ltd was found to have failed toinstall electronic monitor systems for their storage as requested by thegeneral department after numerous reminders.
Minister of Finance Ho Duc Phoc said his ministry has been andwill continue supporting all traders and retailers with the ultimate goal ofensuring an ample supply of petrol for the domestic market and industrialproduction.
Cargo from two other traders is going through qualityinspection under the Ministry of Science and Technology.
"Quality inspection is under the Directorate for Standard,Metrology and Quality's jurisdiction," said an MoF spokesperson.
MoF said other than the above-mentioned four traders, all others,who meet their financial duties and operational requirements, face norestrictions in import activities. MoF said MoIT, which oversees petroltraders' operations, must urge traders to quickly comply with currentregulations and meet their financial duties.
Commenting on traders' grievances, economist Ngo Tri Long saidprices have been raised to cover rising operational costs several timesbut a long-term solution must require traders to seek new suppliers and make aneffort to reduce costs.
According to MoIT, Vietnam’s petrol reserves stood at 1.255million cubic metres on September 30. The country's two largest refineries BinhSon and Nghi Son's total output of 1.3 million cubic metres were enough to meet80% of domestic market demand in October. Some 34 traders were tasked withimporting the remaining 20%, calculated at half a million cubic metres.
The main issue remains with a delay between petrol prices in thedomestic and international markets, making traders lose money when theyimported at higher prices in the previous cycle but were forced to sell atlower prices before prices could be adjusted.
"As prices continued to fluctuate, it ate into traders'profit. Imagine how motivated they can be when have to face a thinner profitmargin, even financial loss," said Minister of Industry and Trade Nguyen HongDien.
In addition, traders' credit room has not been expanded in recentmonths while the global oil price has doubled.
"Oil price has gone up from 50-60 USD a barrel tosignificantly higher, double at times but credit room stayed the same,"said the minister.
A number of gas stations, mostly in southern provinces, have beenclosed in recent weeks with traders citing financial losses and difficultiesin clearance for petrol imports./.
VNA
