At a regular press conference held on the afternoon of March 29, leaders of the Ministry of Industry and Trade answered the press about the proposed changes to the draft decree on petroleum that the Ministry of Industry and Trade has just completed for public comment.

Regarding the formula and mechanism for gasoline prices in the draft decree, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade) Nguyen Thuy Hien said that this draft decree is closer to the market mechanism. Accordingly, the state issues a price formula for businesses to decide on their own selling prices, but not higher than the prescribed price formula.

The representative of the Domestic Market Department also assessed that recently, the Petroleum Price Stabilization Fund has revealed some shortcomings, so this draft is studying to introduce stricter regulations on the spending level, time of deduction, and use of the fund.

“The draft decree is expected to clearly stipulate that in cases of price stabilization, the Ministry of Industry and Trade will preside over and coordinate with ministries and branches to propose, send to the Ministry of Finance for synthesis, and report to the Government for consideration and decision on policies and measures to stabilize gasoline prices for implementation. This is also consistent with the provisions of the newly issued 2023 Price Law, which will take effect from July 1, 2024,” said Ms. Nguyen Thuy Hien.

In addition, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan informed: the draft has many innovative contents to ensure the goal of balancing the supply and demand of gasoline, ensuring energy security and the management process must approach the market, but must be regulated by the State.

“Regarding price management, we innovate in the direction of only providing a formula, on which businesses can calculate on the basis of actual costs to set a suitable price but not exceeding the ceiling price. This ensures both stability and market orientation, ensuring harmony among all parties,” said Deputy Minister Nguyen Sinh Nhat Tan.

Explaining the decision to maintain the Petroleum Price Stabilization Fund, the leader of the Ministry of Industry and Trade also stated that reality shows shortcomings, the drafting committee is discussing further some surrounding issues and will come up with a unified plan after consulting with specialized agencies and relevant organizations (about 60 days).

At the same time, the Ministry of Industry and Trade has just submitted to the Government a new draft decree on petroleum, which will replace previous decrees on petroleum trading. The focus is on allowing businesses to decide on their own petroleum prices and maintain the Petroleum Price Stabilization Fund, but building a new mechanism to replace current regulations and will specify cases of fund deductions and disbursements...

The draft is currently being consulted by professional agencies and relevant organizations. The Ministry of Industry and Trade will work with relevant ministries and agencies to study and evaluate it to complete it and then widely consult.