Recently, the Ministry of Industry and Trade issued decisions to revoke the certificates of eligibility for gasoline distribution from several enterprises across Hanoi, Ho Chi Minh City, Nam Dinh, Hai Phong, and Quang Nam.

Ms. Nguyen Thuy Hien, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade), explained that the Ministry had requested key traders and distributors to report on their compliance with the conditions required to be gasoline distributors. Upon reviewing these reports, it was found that many traders could not maintain these conditions and thus proactively returned their certificates.

Since the start of the year, 16 traders have requested to return their certificates, and the Ministry has complied with these requests, revoking the certificates accordingly.

Ms. Hien noted that the participation and withdrawal of enterprises from the market is a regular occurrence, and the petroleum sector is no exception. In 2023, the number of petroleum distributors peaked at over 330. Currently, there are 298 distributors active in the market.

For those traders who returned their certificates but wish to continue trading in petroleum, they can opt to become retail agents for petroleum, allowing their stores to remain operational. If they choose not to continue in the petroleum trade, they can transfer or lease their facilities to other petroleum businesses, ensuring the stores continue to operate.

The Ministry of Industry and Trade has assigned minimum total source quotas (including imported and domestically purchased petroleum) to petroleum business hubs to ensure supply. Since the beginning of the year, these hubs have adhered to the minimum total source requirements, meeting the demand for petroleum.

For the second quarter of 2024, it is estimated that the total source of imported and domestically purchased petroleum will be about 6.35 million m³/ton, with consumption expected to be around 6.3 million m³/ton. Inventory levels are projected to be between 1.7-1.8 million m³/ton.

Hanh Nguyen