The Dung Quat Oil Refinery in the central province of Quang Ngai. (Photo: VNA)Currently,the country's entire reserve can only meet domestic demand for 5-7 days.
The ministrysaid it has been working closely with the Ministry of Finance and the Ministryof Planning and Investment to iron out all the details.
Despiterising global prices and stronger demand in the domestic market since thebeginning of the year, Vietnam has not yet been forced to tap into its nationalreserve. The country's reserves consisted of trader reserves,refineries and national reserves.
"In theevent of a shortage, we prioritise the use of reserves by traders andrefineries first before the national reserve. We understand that 5-7 days'worth of reserve is not a lot, and we must seek ways to improve that,"said Nguyen Thuy Hien, Deputy Director of the ministry's Information andCommunication Department.
Answering questionsregarding Vietnam's recent initiative to ramp up petrol import from Malaysia, acountry with lower-than-average fuel prices compared to other countries in theregion, Deputy Minister of Industry and Trade Do Thang Hai said it was unlikelyto help bring down domestic prices.
"Malaysiaisn't that much different. We are paying the same prices for Malaysian fuel,just like any other Asian suppliers," he said.
The ministrysaid supply was sufficient during the first half of the year for industrial andresidential demand despite production disruptions at the Nghi Son Refinery, thecountry's largest supplier, and challenges in finding imports.
"Wegive priority to domestic suppliers, but they must show commitment and fullydisclose operational information. The rest will be filled by imports," hesaid.
Nga said theministry had instructed domestic suppliers to take measures to ensure supply isample in all cities and provinces.
Asked if theministry supported further tax cuts on petrol products, she said there wasstill room to manoeuvre.
"Recentenvironmental tax cuts have been a big help in stabilising domestic fuel price,especially when global prices were spiking," she said.
She said herministry and other governmental agencies have been working with traders andsuppliers to produce a tax cut scheme, which is to be presented to thegovernment for approval.
A litre ofRON95-III gasoline, the most commonly used fuel, costs 32,375 VND as of June 20compared to 23,870 VND at the beginning of the year, a 8,505 VND or a 35.6 percentincrease. Rising fuel prices were said to have put major pressure on thecountry's ability to rein in inflation and speed up economic recovery, witheconomists and industry leaders increasingly vocal about abolishing several currentfuel taxes and fees./.
VNA
