The discount in petroleum business is the discount of a petroleum business to a petroleum buyer compared to the retail price of petroleum. The discount level is flexibly adjusted by petroleum companies (reflecting market characteristics), depending on fluctuations in supply and demand, prices in the world and domestic markets.
According to the Ministry of Industry and Trade, current legal regulations on petroleum trading in Vietnam do not stipulate the discount level. The State only creates an environment, manages, operates and regulates retail price ceilings for petroleum products (to protect consumer rights and operate the macro economy), not regulates discounts on petroleum business of enterprises.
Whether the discount is high or low depends on the business relationship of the enterprise, the business contract between the enterprises.
Decree 80/2023/ND-CP of the Government amending a number of articles of Decree 95/2021/ND-CP and Decree 83/2014/ND-CP on petroleum trading has allowed petroleum retailers to sign contracts as agents for 3 unit traders or petroleum distributors has also opened up more options for petroleum retailers to supply more goods. Petroleum retailers will choose traders to supply them with reasonable discounts.
Current regulations on petroleum trading are gradually following the market mechanism and moving towards applying petroleum prices completely according to the market mechanism in the spirit of Resolution No. 55-NQ/TW dated February 11, 2020 of the Politburo on the orientation of Vietnam's National Energy Development Strategy to 2030, vision to 2045 and direction of the Government Standing Committee in Document No. 175/TB-VPCP dated April 13, 2025.
In the past 2 weeks, the world petroleum market has fluctuated due to conflicts in the Middle East, causing world petroleum prices to increase, with the risk of supply disruption, some unit traders have reduced the petroleum discount for dealers to 500 VND, or to 100-200 VND.
However, by June 25, 2025, due to positive signals from negotiations in the Middle East, gasoline prices had decreased, the risk of supply shortages decreased, so the discounts of unit enterprises also increased again.
Thus, dealers and retail stores in the petroleum market must accept market rules and be subject to market regulation (bargaining, demand, prices); need to have a business plan to respond when the market fluctuates. For example, when world oil prices are low and supply is abundant, unit and distribution enterprises may set discounts for retail companies at a high level.
However, when world oil prices increase or are forecast to increase, supply becomes scarcer, retail companies may have to accept low discounts, possibly negative discounts, but still have to import goods to maintain business operations, compensate when receiving high discounts.
