HCM City has said there is enough petroleum products supply to comfortably meet demand following reports some petrol stations purportedly ran out of stock. — Photo Petrolimex

In recent days many petrol stations in the city and neighbouring provinces have claimed they do not have stocks, but deputy chairman of the Viet Nam Petroleum Association, Trinh Quang Thanh, too confirmed there is no shortage of supply.

The output at the Dung Quat and Nghi Son oil refineries in the second quarter is expected to be around 3.03 million tonnes, 200,000 tonnes higher than in the first quarter and comfortably enough to meet the country’s demand.

Director of the Ministry of Industry and Trade’s Domestic Market Department, Tran Duy Dong, had asked province trade departments to closely monitor retail petroleum products sales to ensure there is adequate supply.

To ensure strict implementation of regulations governing the oil business, the ministry has instructed the General Department of Market Surveillance to keep a closer eye on oil trading companies and their retail systems.

It has promised strict action against traders caught violating the regulations.

The city trade department has called on petroleum products distributors and retailers to ensure sufficient supply to meet local demand.

It warned them not to sell to customers who use containers to hoard oil products.

The Police Department of Fire Prevention, Fighting and Rescue and district police have been instructed to warn locals against hoarding oil products due to fire hazard, and to carry out regular inspections to enforce this.

The city Market Surveillance team will monitor oil and petrol businesses to prevent trade fraud, distribution of low-quality products, hoarding of goods and other fraudulent activities.

There are 545 petrol stations in the city that sell 200,000cu.m of oil products per month.

Petrol stations “hoarding” face strict punishments

The Minister of Industry and Trade Tran Tuan Anh has requested checks on petrol stations which reported a lack of petrol and those found to have been “hoarding goods” to wait for price increases be strictly punished.

Recently, a number of petrol stations have seen a shortage of petrol, while buyers could only buy a maximum amount set by these stations. Some stations also announced they had ran out of petrol and temporarily closed.

The Ministry of Industry and Trade (MoIT) on Wednesday sent a dispatch to relevant authorities to ensure petrol supply.

Cao Hoai Duong, general director of PetroVietnam Oil Corporation (PVOIL), said they have always ensured sufficient petrol supply for agents according to signed contracts.

However, petrol agents often buy petrol from difference sources to maximise profits.

Agents buy only 50 to 70 per cent of their total petrol amount from a wholesaler while the remaining would be bought from others with better prices.

Petrol prices have been on an upward trend following the increase in the world market. Agents have found it hard to buy petrol from other sources at low prices.

A representative of Binh Son Refinery (BSR) said the company has increased capacity to the highest level to meet increasing demand.

Tran Duy Dong, director of the ministry’s Domestic Market Department, said the total supply of petroleum for the local market was sufficient. The stock shortage was due to the strong increase in demand after a period of social distancing due to COVID-19 and people buying before petrol prices increase sharply again.

“The department has asked to supplement petrol supply at locations which face a shortage. We would implement strict punishments for traders, distributors and wholesalers stopping sales and waiting for price increase,” he said.

The ministry has also required traders to actively find petrol supply resources to ensure production and business activities.

MoIT asked the Nghi Son Refinery and Binh Son Refinery to increase productivity and complete maintenance soon to ensure supply.

Market Watch Departments would check petrol stations to prevent hoarding. VNS