“Involved parties should not lay the blame on each other because the market is indeterminate. Let petroleum import and distribution companies negotiate with each other about benefits, and the market will become harmonious,” said Nguyen Dinh Cung, a respected economist.

Van Tan Phung, chair of Dong Nai Trading and Petro Corporation, said petroleum distributors have the same grievances as retailers. Both retailers and distributors have incurred losses.

According to Phung, import companies are the reasons behind the losses. The disruption in fuel supply, through the pandemic, has exposed problems in management.

“The stockpile is running out. We are distributors but we don’t have products, so how can we provide products to retailers? The problem lies in importers. The management is problematic there. We incur heavy losses,” Phung said.

As for the discount rate which has frustrated retailers recently, Tran Duy Dong, director of the Ministry of Industry and Trade’s (MOIT) Domestic Market Department, said the question is why the discount rate was not problematic in the past, but the problem has been raised recently. 

The discount rate depends on many factors, including supply and demand, competition, enterprises’ financial situation and inventory levels.

“We need to raise a question: should any country in the world set a minimum discount rate and should the state intervene in enterprises' business? If yes, what should the percentage be?” Dong said.

He said that most of the members of the board in charge of compiling and amending Decrees 83 and 95 are inclined to restrict the state’s intervention in the petroleum market and let supply and demand determine market prices.

“The State will still maintain the petrol price stabilization fund, but the fund won’t be used regularly as currently. The fund will be used in a transparent way, and machines, not people, will calculate when to use the fund,” a representative of the compilation committee said.

Cung said it is not the time to blame each other because the market, by nature, is always uncertain. 

“The state should not let enterprises incur losses because of administrative interventions, unreasonable mechanisms and policies. We talk a lot about discounts. I think the term is inaccurate. Let’s importers and distributors negotiate with each other about benefits. If so, the market will become harmonious,” Cung said.

Luong Bang