The Ministry of Industry and Trade has proposed allowing petroleum companies to announce and adjust retail fuel prices within their distribution systems. The ministry also outlines plans to stabilize fuel prices if retail prices rise by 20 percent within one month.

Decentralizing fuel price announcements to businesses

The Ministry of Industry and Trade is currently seeking feedback on a draft circular detailing several provisions of the decree governing petroleum trading.

Notably, in the third draft of the circular, the ministry proposes that petroleum wholesalers and distributors be allowed to announce and adjust retail fuel prices within their distribution systems. For mazut oil, the regulation would apply to wholesale prices.

Under the proposal, petroleum wholesalers would declare retail fuel prices according to the prescribed format and submit them to the Ministry of Industry and Trade, specifically the Agency for Domestic Market Management and Development, as well as to provincial authorities where the businesses operate distribution networks through the ministry’s software system.

In addition, fuel retailers that are not part of the distribution system of a petroleum wholesaler or distributor would be allowed to announce and adjust retail prices directly at their retail stations.

These retailers would also be required to declare retail prices using the prescribed format and submit the information to provincial authorities or authorized local agencies where the retail stations operate through the ministry’s digital platform.

Businesses must also submit documents detailing the methods and principles used to calculate and announce fuel prices to the Ministry of Industry and Trade and provincial authorities where their distribution networks operate.

If any changes are made to pricing methods or principles, businesses must notify the ministry and the relevant provincial authorities before implementing the new pricing mechanism.

The Ministry of Industry and Trade emphasized that the announced pricing methods and principles must comply with existing regulations.

Proposal to stabilize fuel prices if retail prices rise by 20 percent in one month

Regarding fuel price stabilization, the ministry proposes that gasoline, biofuel gasoline and diesel oil be included in the list of goods subject to price stabilization measures.

Retail fuel prices used for monitoring and evaluation would be those announced by petroleum wholesalers. The assessment would be based on the sales volume proportions of various gasoline and diesel products from several representative wholesalers whose combined sales account for more than 70 percent of total national consumption.

Price stabilization measures would be considered if domestic retail fuel prices experience unusual fluctuations, rising continuously within one month with a large margin and a cumulative increase of 20 percent or more. Such increases could potentially affect macroeconomic stability, inflation control and people’s livelihoods.

The Ministry of Industry and Trade would coordinate with the Ministry of Finance and other relevant agencies to collect and analyze data on global fuel supply and demand, world fuel prices, cost components, retail prices, inventory levels, consumption demand, and domestic production and imports over a certain period, such as three months or one month.

Based on these analyses, the ministry would assess the potential impact on socio-economic development, production activities and daily life, and then prepare a fuel price stabilization report to be submitted to the Ministry of Finance for consolidation and reporting to the government for a decision on stabilization measures.

Fuel price stabilization would be implemented in accordance with the principles outlined in the Price Law, government resolutions on price stabilization plans and other relevant legal regulations.

Once the government approves a stabilization policy, the Ministry of Industry and Trade would take the lead in implementing the measures and guiding provincial authorities in carrying them out.

The procedures and organization of fuel price stabilization would follow the provisions of Decree No. 85/2024/ND-CP detailing several articles of the Price Law, along with any amendments or supplementary regulations and government resolutions on stabilization plans.

In cases where competent authorities declare a state of emergency, disaster, incident or epidemic and retail fuel prices fluctuate abnormally, the Ministry of Industry and Trade would coordinate with the Ministry of Finance and other agencies to implement stabilization measures in accordance with regulations.

Tam An