Petroleum will not be in short supply domestically by the end of the year, the Ministry said, citing a report by the Vietnam Oil and Gas Group (PVN) that both of its Nghi Son and Binh Son oil refineries are operating at full capacity in order to ensure a sufficient supply of petroleum for domestic use.

Most notably, the Binh Son oil refinery will be operating at 105% of its design capacity during the last six months of the year to supply petroleum to the local market.

Both oil refineries are expected to produce approximately 3.9 million m3 and 4.4 million m3 of products in the third and fourth quarters this year, thereby accounting for 72% and 80% of the country’s total demand in the two quarters, respectively.

To ensure the supply, the Ministry of Industry and Trade will continue to monitor the production and supply of petrol and oil of businesses so they can adjust import and production plans to provide a sufficient source of petroleum to the market, the Ministry outlined in its report.

According to the Ministry, the domestic supply was impacted by a production cut occurring at the Nghi Son oil refinery early this year, leading to a shortage of petroleum over recent months. In addition, the import of petroleum has also been hit by the Russia-Ukraine conflict, resulting in a sharp increase in prices.

The Ministry directed major petrol and oil businesses to step up production and import of petroleum in the second quarter of the year to make sure the supply of petrol and oil for the domestic market was basically guaranteed.

They also worked closely alongside the Ministry of Finance to adjust retail petrol and oil prices so they fall in line with global market trends.

It proposed that the Ministry of Finance co-ordinate with relevant ministries and sectors to consider further axing taxes, including the excise tax, import tax, and value-added tax to lower retail petrol and oil prices locally, providing the global oil market continues skyrocketing.

Source: VOV