Nghi Son Refinery has had to reduce capacity from 105% to 80% because of a lack of money as the Vietnam Oil and Gas Group (PVN) has not fulfilled some financial obligations to the plant, causing interruption of crude oil import for production. With a market share of more than 35%, Nghi Son Refinery’s capacity reduction will affect the domestic supply of gasoline and oil.

Mr. Tran Duy Dong, Director of the Domestic Market Department of the Ministry of Industry and Trade, said the Ministry has required businesses to have an import plan to ensure supply of gasoline.

Regarding Nghi Son Oil Refinery, the Ministry has asked it to report on plans and delivery progress of contracts signed with petroleum wholesalers.

While the petroleum wholesalers are worried about sourcing to avoid a supply disruption for the domestic market, petrol and oil dealers said that in the past few days, they have received notices from major providers about the possibility of price increases.

For concerns about the lack of petroleum supply, a leader of the Domestic Market Department affirmed that the ministry is responsible for ensuring supply in the domestic market and will give instructions for businesses to strictly implement this issue.

However, petroleum wholesalers suggested that the Ministry of Industry and Trade should have a supportive solution to minimize risks for them when they have to import additional sources of petrol and oil without preferential tax rates to meet domestic demand.

The Ministry of Industry and Trade also needs to direct PVN and Dung Quat Oil Refinery to increase capacity and supply output in January to make up for the shortfall under the contract signed from Nghi Son.

Ha Duy

Global energy crisis: another concern for Vietnam's economy

Disrupted coal mining in Ordis in Inner Mongolia, the most important coal mining hub in the world, is posing huge risks that could stifle global growth.

Petroleum sector seeks protective policies to counter contraction

Output contraction is an inevitable part of exploiting finite oil and gas fields worldwide. In Vietnam, most of the active fields have been exploited since 1986.