(VNS/VNA) - MoF said it gave the green light for two price adjustments since the beginning of October to raise petrol prices by 350 VND per litre and transport costs by 290 VND on October 7.
However, MoF said it has not been able to meet MoIT's demand as the latter failed to send a cost report to justify further adjustments. As soon as such information becomes available, MoF, upon completion of their own due diligence research, both on the books and on-site, will make the final decision.
Furthermore, MoF said it stands by the decision to stop all petrol traders, who have not met their financial duties to the State and other requirements per current regulations, from clearing customs for their cargo. The General Department of Vietnam Customs has received instruction to work 24/7, national holidays included, to help traders once all said duties and requirements are met.
According to MoF, of the four traders who were reportedly not allowed to clear customs, the Xuyen Viet Oil Travel and Transport Trading Co. Ltd have accumulated more than 684 billion VND (27.5 million USD) in import duties. A decision made earlier to stop this company's operation is legal and in accordance with the country's tax regulations.
Another company, the NSH Petro Co. Ltd was found to have failed to install electronic monitor systems for their storage as requested by the general department after numerous reminders.
Minister of Finance Ho Duc Phoc said his ministry has been and will continue supporting all traders and retailers with the ultimate goal of ensuring an ample supply of petrol for the domestic market and industrial production.
Cargo from two other traders is going through quality inspection under the Ministry of Science and Technology.
"Quality inspection is under the Directorate for Standard, Metrology and Quality's jurisdiction," said an MoF spokesperson.
MoF said other than the above-mentioned four traders, all others, who meet their financial duties and operational requirements, face no restrictions in import activities. MoF said MoIT, which oversees petrol traders' operations, must urge traders to quickly comply with current regulations and meet their financial duties.
Commenting on traders' grievances, economist Ngo Tri Long said prices have been raised to cover rising operational costs several times but a long-term solution must require traders to seek new suppliers and make an effort to reduce costs.
According to MoIT, Vietnam’s petrol reserves stood at 1.255 million cubic metres on September 30. The country's two largest refineries Binh Son and Nghi Son's total output of 1.3 million cubic metres were enough to meet 80% of domestic market demand in October. Some 34 traders were tasked with importing the remaining 20%, calculated at half a million cubic metres.
The main issue remains with a delay between petrol prices in the domestic and international markets, making traders lose money when they imported at higher prices in the previous cycle but were forced to sell at lower prices before prices could be adjusted.
"As prices continued to fluctuate, it ate into traders' profit. Imagine how motivated they can be when have to face a thinner profit margin, even financial loss," said Minister of Industry and Trade Nguyen Hong Dien.
In addition, traders' credit room has not been expanded in recent months while the global oil price has doubled.
"Oil price has gone up from 50-60 USD a barrel to significantly higher, double at times but credit room stayed the same," said the minister.
A number of gas stations, mostly in southern provinces, have been closed in recent weeks with traders citing financial losses and difficulties in clearance for petrol imports.
