Facing strong opposition from petroleum businesses, the Ministry of Finance (MOF), the compiler of the draft decree on petroleum business management, has persisted in its opinion.

Several major distributors have proposed reducing the petroleum import volume assigned to them in 2024.

While many private oil and gas companies are struggling with losses and huge tax debts, and their leaders are banned from leaving the country, Petrolimex, the biggest player in the field, has reported impressive business results.

Experts say the new petroleum pricing scheme created by the Ministry of Industry and Trade (MOIT) is just like the old one and does not solve existing problems.

The Ministry of Industry and Trade’s draft proposal on the petrol business which states that distributors are not allowed to trade petrol with each other but only permitted by buy petrol from wholesalers, has met objections.

Experts believe that it is necessary to change the current petroleum market management scheme, and apply a market-based pricing policy instead of administrative instructions.

Deputy Prime Minister Le Minh Khai asked the Ministry of Industry and Trade (MoIT) to study the establishment of a petroleum exchange.

Many next-generation car owners complain that it is difficult to find filling stations that meet Euro 5 fuel standards. However, this kind of fuel accounts for only 10 percent of demand.

Since the beginning of the year, 16 traders have requested the return of their certificates of eligibility to be gasoline distributors, leading the Ministry of Industry and Trade to revoke these licenses as per regulations.

Sixteen traders have quit the petroleum distribution business since the beginning of 2024, but their leaving will not impact petroleum supplies, a representative from the Ministry of Industry and Trade said.

As the domestic petrol prices are also going parallel with the world market, the removal of the petrol price stabilisation fund should be considered.

Under the plan, the focus will also be on developing the petrol stations along new roads and in new urban areas with an appropriate roadmap to reduce the number of small-scale and inefficient stations.

Technology experts say that using e-invoices is necessary to achieve a transparent petroleum distribution market to prevent unofficial products and false statements about petroleum output.

The second draft was revealed on April 1, a few days after the ministry submitted the first draft of the revised Decree on petroleum business.

According to the new proposal, key petroleum businesses can decide their gasoline selling prices while the State authorities only announce the average world petroleum price every 15 days.

Last year many petroleum companies had to pay penalties for fraud they had committed many years before. Some of them owed huge tax debts or were forced to pay tax arrears, while their leaders were prohibited from leaving the country.

A number of petroleum distributors owe trillions of dong in tax, mostly environmental protection tax.

The Ministry of Industry and Trade (MOIT) has proposed transferring its responsibility for petroleum reserve management to the Ministry of Finance (MOF). But MOF says that only MOIT is in the position to undertake the work.

A number of petroleum distributors are in distress: their tax debts are increasing and their leaders have been prohibited from leaving the country.