A contractor said it had bought tens of trucks and excavators to help speed up a public investment project but had to leave the trucks unused for several weeks because of a lack of oil.

While the Ministry of Industry and Trade (MOIT) affirmed that the gasoline and oil inventories are enough for consumption until the end of November, people and businesses can’t buy fuel.

The problem comes from the pricing scheme. Petrol prices in the world change every hour. Meanwhile, in Vietnam, they are adjusted once every 10 days. As a result, gasoline distributors and retailers refuse to sell gasoline to people and businesses, because they don’t make a profit if world prices escalate, but domestic prices remain unchanged.

The Minister of Industry and Trade has accused petrol distributors as ‘copping out of their responsibilities’ because they don’t sell gasoline. In his telegram dated November 3 to ministries and agencies, the Prime Minister requested adjusting the time for petrol and oil price adjustments.

With modern technology and information, it would be better to cut the time for gasoline price adjustment from 10 days to 3 days, or even one day.

In principle, gasoline distributors, including state owned enterprises (SOEs), only run business activities if they see they can make a profit. Meanwhile, they have been, for many days, having to sell gasoline at prices lower than the cost prices. They say their endurance is ‘limited’.

Vietnam shifted from the centrally planned economy mode to the market economy three decades ago. Therefore, management must be implemented with respect to the market economy. In a market economy, prices are determined and go according to the law of value, law of supply and demand, and law of competition.

Imposing a fee of zero VND and adjusting gasoline prices once every 10 days show problems in understanding the laws. If distributors cannot make a profit, they will not distribute gasoline, even though gasoline stock is full.

Tu Giang