Request to reduce monopoly position in petroleum business
The group of petroleum distributors and retailers has just sent a document to the Prime Minister regarding issues related to amending the Decree on petroleum trading - Draft 04 is being consulted by the Ministry of Industry and Trade. The new Decree will replace Decree 83 of 2014, Decree 95 of 2021 and Decree 80 of 2023.
In the petition, petroleum distributors and retailers said that the new draft still does not "escape" the old management viewpoints and methods, which have caused consequences in terms of not being able to control prices, causing petroleum crises at some points.
The new draft still discriminates between petroleum businesses, creating business advantages for large businesses with monopoly positions, creating negativity, forming "group interests", and limiting the business rights of small and medium-sized enterprises.
Regarding the mechanism for regulating gasoline prices, the group of gasoline traders expressed their opinion that the 2023 Price Law stipulates that gasoline is on the list of price-stabilized goods but is not priced by the State; gasoline trading enterprises have the right to decide on prices themselves.
However, according to the current mechanism and the draft decree, the State still intervenes administratively in gasoline prices with 6 measures and tools, including setting the selling price formula; setting the business cost level; setting the business profit level; setting the adjustment period, announcing the selling price; exercising the right to announce world gasoline prices; and establishing a mandatory price stabilization fund.
"Does the content of the draft decree on petroleum violate the Law on Prices? In the context of no free and fair competition, distributors and retailers are at a disadvantage because they depend on the price of the main traders. The consequences lead to many small businesses suffering losses and being forced to close down," said the group of petroleum distributors.
To ensure transparency and competition in the petroleum market, when commenting on the draft decree, many businesses and experts proposed that the Government allow the establishment of a petroleum trading floor.
The Government leader also sent an official dispatch requesting the Ministry of Industry and Trade to preside over research into establishing a petrol trading floor to overcome the shortcomings of the current petrol management mechanism.
To do this, the Ministry of Industry and Trade must review the draft decree in the direction of amending and supplementing regulations on the purchase and sale of petroleum through the Commodity Exchange, in accordance with the provisions of the 2005 Commercial Law.
The group of petroleum traders also requested to amend the draft decree in the direction of allowing distributors to buy petroleum from other distributors as Decree 95 had previously done.
At the same time, it is necessary to abolish the regulations on classifying traders. Instead, the regulation of the decree is that the subjects of regulation are petroleum trading enterprises in general with conditions and technical standards associated with business activities.
Try to design the decree in the most market-oriented way
In response to business recommendations, on the afternoon of October 2, the Ministry of Industry and Trade held a conference to discuss and reach consensus on completing a draft decree to replace the decrees on petroleum trading.
Minister Nguyen Hong Dien said that this is the fourth time the Ministry of Industry and Trade has sought opinions from ministries and branches and also the fourth time it has submitted to the Government a draft Decree on petroleum business to have the most perfect and suitable plan compared to the current situation.
Up to this point, there are still some problems in drafting the decree, however, the Ministry of Industry and Trade has complied with the basic viewpoints in Resolution 55 of the Politburo on Vietnam's Energy Development Strategy to 2030 with a vision to 2050.
That is to implement a management mechanism for petroleum business activities with the aim of contributing to ensuring national energy security, meeting domestic market demand, while operating according to market mechanisms, ensuring fair competition and ensuring State control to contribute to stabilizing the macro economy and economic indicators.
"We are committed to accepting the opinions of the delegates. The Drafting Committee's viewpoint is to comply with the Government's instructions, trying to design the document in the most market-oriented direction and the best State management," said Mr. Dien.
