Big players are worried about price manipulation when they have the autonomy to set fuel prices.

According to the proposed mechanism, the State agency will announce the component costs, and then businesses will calculate the price ceiling themselves, instead of the current system where the State agency announces the price ceiling.

Mr. Nguyen Tien Thoa, former Director of the Price Management Department ( Ministry of Finance ), believes that the above proposal does not contain any groundbreaking or innovative regulations on pricing. He argues that the draft regulations allow businesses to set prices that do not exceed the ceiling price, but these prices must be calculated based on the price components guided by the State, and the method for calculating the cost of each price-forming element is determined by the State.

Therefore, even if the current management method—where the State announces the base price as a basis for businesses to set prices—is changed to a system where the State does not announce prices but instead announces costs for businesses to determine prices, the fundamental nature of the State's direct intervention in the market through price ceilings, including certain market-based costs, remains unchanged.

Furthermore, Mr. Thoa argued that the new proposal is a "step backward" compared to the current regulations. Specifically, businesses are not allowed to announce prices until the Ministry of Industry and Trade publishes the factors that determine pricing.

Businesses are simply responsible for adding up all the costs that make up the price, as stipulated by the State, to determine their own price.

"These regulations contradict the Law on Prices, which stipulates that gasoline and diesel are not commodities whose prices are determined by the State, but rather by businesses according to market price mechanisms."

"If the State sets a maximum price, it should only intervene to stabilize prices, not impose it continuously and regularly even when the market is functioning normally, as proposed in the draft decrees," Mr. Thoa said.

From a business perspective, some traders are concerned that the new regulations, which empower wholesale traders to set their own prices, will create a monopoly for large businesses.

"The petroleum market is dominated by state-owned enterprises Petrolimex and PVOil, so even with nearly 40 petroleum distributors, it's difficult to have many different, competitive price levels because the distributors with market share will 'anchor' the prices set by the larger distributors," a trader worried.

To prevent monopolies and the abuse of dominant market positions leading to unfair competition, some traders believe that specific regulations on profit margins relative to input costs should be set by the Ministry of Industry and Trade.

We propose allowing primary distributors to set wholesale prices at level one.

Speaking to Lao Dong newspaper, Mr. Nguyen Xuan Thang, Director of Hai Au Phat Petroleum Company Limited, said that from the conferences to draft Decrees 83, 95, and 80 on petroleum business, it seems that the content of these decrees was all based on the interests of petroleum distribution companies. If these distribution companies were allowed to independently determine retail prices, it would be like "a tiger growing wings."

This could lead to consequences such as retail businesses being pressured into accepting lower discounts, having costs and benefits misappropriated, and not distributing them according to regulations; causing chaos, unfairness, and localized disruptions in the petroleum market.

Therefore, Mr. Thang proposed allowing primary distributors to set wholesale prices at level one; allowing distributors to set wholesale prices at level two and retail prices; and allowing gasoline retailers to determine retail prices.

"In the case where the State regulates retail prices, I propose that the domestic business costs and profits of all three stages be 3,000 - 5,000 VND/liter, and the State should issue a specific, clear, and transparent allocation ratio for the three stages through a supplementary circular replacing Circular 103 guiding the method of establishing, spending, and managing the Fuel Price Stabilization Fund, or specify it in a new decree," Mr. Thang said.