According to the investigation conclusion of the Ministry of Public Security, former director of Xuyen Viet Oil Mai Thi Hong Hanh was accused of using money from the Petroleum Price Stabilization Fund to buy real estate, lend money to friends, spend on personal expenses, and pay huge bribes to a number of individuals at the Ministry of Industry and Trade and the Ministry of Finance.
However, in addition to spending money from the Petroleum Price Stabilization Fund indiscriminately, not only Xuyen Viet Oil but also some petroleum wholesalers are late in depositing money from the Petroleum Price Stabilization Fund into bank accounts or are not fully declaring the balance of the Petroleum Price Stabilization Fund, potentially causing many risks of losing people's money.
The Ministry of Industry and Trade and the Ministry of Finance have repeatedly issued documents urging businesses such as Xuyen Viet Oil and Hai Ha Waterway Transport Company Limited to transfer the price stabilization fund to the budget. However, to date, the Ministry of Finance has not received any information from these businesses about the implementation of the payment of the balance of the Petroleum Price Stabilization Fund.
Recently, the Ministry of Industry and Trade also issued a document requesting Trung Linh Phat Company Limited to report on the implementation of regulations on the Petroleum Price Stabilization Fund and to remedy related violations.
According to the ministry, despite repeated requests for the company to strictly comply with regulations on the petroleum price stabilization fund, including transferring money to the price stabilization fund account, the company has yet to do so.
Need to abolish the Petroleum Price Stabilization Fund
Speaking with Lao Dong, economic expert Vu Vinh Phu - former Deputy Director of Hanoi Department of Trade - said that during the implementation process, the fund has revealed more shortcomings than its effect on stabilizing the market.
Because the fund is kept in businesses, it has sometimes been exploited, used for the wrong purposes, and even violated the law.
According to the conclusion of the Government Inspectorate in January 2024, 3/7 key petroleum traders were fined 3 times or more; 3 traders set aside and used funds for the volume of petroleum exceeding the volume on the books, leading to incorrect fund setting aside of more than 4.7 billion VND and incorrect fund use of more than 22.5 billion VND...
From the above shortcomings, it shows that it is time to end the era of using this fund. When abolishing the Petroleum Price Stabilization Fund, there must be a stabilization fund in kind (petrol) to replace it. Because at present, we are still dependent on the world. The stabilization fund in kind must be large enough to reserve for the country for 3-6 months, only then will it be able to stabilize the market when necessary.
This fund must be accounted for, circulated, bought low, sold high like a State capital management company.
In addition, once petroleum importers, wholesalers, and retailers are given autonomy in their business, the phenomenon of monopoly, group interests, request-grant mechanisms, and complicated, time-consuming and opportunity-wasting reporting regimes for businesses will be eliminated.
From there, retail and wholesale prices will fluctuate according to the world market. Businesses will proactively calculate the business costs from purchasing to selling each drop of gasoline and oil, and will bear the profit and loss.
Petroleum should only be managed by one specialized ministry, which is the Ministry of Industry and Trade. The Ministry of Industry and Trade does not directly direct business but only manages to combat smuggling, trade fraud, counterfeit goods, and tax evasion.
The management department needs to create a healthy, open and transparent competitive environment in the domestic petroleum market. Higher transparency in petroleum transactions will bring benefits to businesses and social consumers when they have a need to use it.
"With the new orientation on establishing a price stabilization fund invested, funded and managed by the State, replacing the previous cash fund, it will bring a new image of business and service of a national essential commodity in the coming years, when the State petroleum reserve has been completed," said Mr. Phu.
