The Government has just issued Decree No. 80/2023/ND-CP amending and supplementing a number of provisions in Decree No. 95/2021/ND-CP dated November 1, 2021, and Decree No. 83/2014/ND-CP dated September 3, 2014, regarding petroleum business.
Addressing issues in the management of petroleum business
According to the Ministry of Industry and Trade, following the directives of the Government and the Prime Minister, the Ministry has worked with the Ministry of Finance and other relevant ministries and agencies to review, amend, and supplement several provisions in Decree No. 95/2021/ND-CP dated November 1, 2021, and Decree No. 83/2014/ND-CP dated September 3, 2014, on petroleum business. The goal is to promptly address the existing issues and shortcomings in the current petroleum business management mechanism.
At the same time, the amendments aim to meet domestic demand for petroleum, contribute to energy security, and help control the Consumer Price Index (CPI).
The changes also seek to balance the interests of businesses using petroleum as an input for production, consumers, and petroleum trading enterprises.
Based on the proposals from the Ministry of Industry and Trade, on November 17, 2023, the Government issued Decree No. 80/2023/ND-CP, amending and supplementing several provisions of Decree No. 95/2021/ND-CP dated November 1, 2021, and Decree No. 83/2014/ND-CP dated September 3, 2014, on petroleum business. The main amendments are as follows:
Reducing the fuel price adjustment period to 7 days
- Regarding the price formula and pricing mechanism: The review period for announcing costs of importing petroleum into Vietnam, the costs of transporting petroleum from domestic refineries, and the premium for calculating petroleum prices from domestic sources is reduced from 6 months to 3 months. This ensures more timely updates on prices and costs for businesses, motivating them to supply petroleum to the domestic market.
- Regarding the price adjustment timeline: The time between price adjustments is reduced from 10 days to 7 days, with adjustments made on Thursdays every week.
- Regarding retail agents being allowed to purchase petroleum from multiple sources: Petroleum retail agents are now permitted to source from up to 3 suppliers. This change promotes competition in petroleum discounts and increases flexibility for retail agents in securing and supplying petroleum.
Reducing intermediaries in the petroleum distribution system
- Regarding intermediaries in the petroleum business: The role of “General Petroleum Retail Agents” is eliminated to reduce the number of intermediaries in the petroleum distribution system.
- Regarding storage requirements for licensing key traders and distributors: Additional regulations are introduced to strengthen the management, inspection, and supervision of businesses involved in the petroleum business. The responsibility for inspecting and supervising compliance with regulations by traders in the petroleum business is delegated to the local Department of Industry and Trade.
Amending regulations on license revocation for petroleum businesses
- Amending regulations on the revocation of petroleum business licenses: New provisions clarify the conditions for revoking petroleum business licenses to ensure compliance with the law and prevent sudden disruptions in petroleum supply, especially during times of domestic supply shortages or scarcity.
- Enhancing the management and supervision of the Petroleum Price Stabilization Fund: Stricter regulations and measures are introduced to ensure better oversight of the fund.
- Additional amendments to address unresolved issues: Several other regulations are amended and supplemented to resolve lingering problems and better align with current conditions.
Furthermore, the Ministry of Industry and Trade, in collaboration with the Ministry of Finance and other relevant agencies, continues to review and develop a new decree to replace the existing decrees on petroleum business, which will be submitted to the Government in the near future.
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