Limit the "shocks" of prices
Tensions in the Middle East are raising global market concerns about energy supplies as well as the safety of international sea transport routes.
Talking to Lao Dong, according to Assoc. Prof. Dr. Ngo Tri Long - an economic expert, for an economy with great openness like Vietnam, the impact of this fluctuation does not only stop at gasoline and oil prices. Cost pressure can spread to many other sectors such as transportation, logistics, industrial production and input material prices. When production and transportation costs increase, the cost of consumer goods in the market is also at risk of being pushed up accordingly. This is also the reason why people often feel very clearly that every time gasoline and oil prices increase, many other essential goods also easily "hike" in price.
“The impact can be viewed according to the level of "dependence" on fuel and transportation of each industry group. First of all, transportation, logistics and warehousing are the most sensitive groups. When fuel prices increase, operating costs almost immediately increase, leading to transportation costs and related services. Next is the input material group such as plastic, chemicals, some agricultural materials or animal feed. These items are subject to a double impact: Both from energy price fluctuations in the world market and from increased transportation costs. For food and consumer goods, the impact level is usually slower but the scope of spread is wider. When transportation, preservation and distribution costs increase, retail prices can also be adjusted accordingly” - Assoc. Prof. Dr. Ngo Tri Long analyzed.
To reduce price pressure while still keeping the market stable, Assoc. Prof. Dr. Ngo Tri Long believes that, first of all, it is necessary to manage gasoline and oil prices flexibly and transparently. The goal is to limit price "shocks", reduce chain reactions to other goods but still ensure that prices reflect market supply and demand.
Second, reduce domestic logistics costs. When international freight rates increase, cutting domestic costs such as procedures, customs clearance time, and congestion will help businesses reduce pressure.
Third, strengthen control over speculation, hoarding and price increases according to rumors. When the market fluctuates, it is necessary to inspect and strictly handle acts of taking advantage of it for profit, and at the same time provide timely information to stabilize market sentiment. Fourth, closely coordinate monetary, fiscal and trade policies. Stabilizing the exchange rate, maintaining reasonable interest rates and supporting the right subjects heavily affected by fuel costs will be more effective than widespread support measures.
Tighten inspection, prevent hoarding of goods
Faced with the complicated developments in the Middle East affecting the global energy market, the Domestic Market Management and Development Department (Ministry of Industry and Trade) has issued an urgent official dispatch requesting the Departments of Industry and Trade of provinces and cities to urgently strengthen inspection and control of gasoline and oil business activities. In which, it is required to promptly detect and strictly handle acts of hoarding goods to create supply scarcity, arbitrarily increasing prices, selling at prices not in accordance with listed prices, trading in smuggled gasoline and oil, of unknown origin or not ensuring quality.
In Ca Mau province, Market Management Team No. 3 (Ca Mau Provincial Market Management Sub-Department) said that it has proactively implemented professional management measures according to the area, strengthened the work of monitoring and closely grasping the developments of supply and demand, gasoline and oil selling prices in the managed area; promptly detected unusual signs such as goods shortages, unreasonable price increases, supply disruptions or sales suspensions without legitimate reasons.
In Gia Lai province, Market Management Team No. 11 (Gia Lai Provincial Market Management Sub-Department) said that it has strengthened propaganda and guidance for traders to strictly comply with legal regulations in gasoline and oil business activities; raising awareness of responsibility in ensuring stable supply, contributing to stabilizing the market, and preventing panic among the people.
