Local authorities discuss fuel prices

In a document sent to the Ministry of Industry and Trade (MoIT) and the Ministry of Finance (MoF) on April 13, Deputy Prime Minister Le Minh Khai assigned MoIT and MoF to study regulations on business expenses and return the profit to the retail stage.

Government leaders noted that MoIT and MoF should ensure "scientific, harmonious, and reasonable" interests for all parties when revising petrol business regulations.

Standard fuel and oil trading expenses represent the maximum wholesale and retail costs that may be used to calculate the petrol and oil base prices. Currently, the standard cost for petroleum is 4.5 US cents per litre, and the standard profit is 1.3 US cents per litre (a total of 5.7 US cents per litre).

According to regulations, crucial businesses will divide this level between distributors and retail merchants, but the division ratio is unregulated. Retailers claim that this has caused them to lose trillions of dollars over the past year, despite the fact that they must still sell.

In a proposal sent to the prime minister on March 14, enterprises requested that both ministries establish a council to redistribute the cost and profit standard in the fuel base price. Enterprises also proposed that the aforementioned cost be specified in the new decree.

In the preceding petition, retail businesses proposed joining the ministries to establish a council to redistribute the costs and profits. In which the ministries must specify how much of this sum retail enterprises receive.

Previously, during an explanation session of the National Assembly Economic Committee on the petrol market at the end of February, several retailers stated that they had been forced to sell products at no discount for over a year.

They estimate that the past year's losses were between $128 and $170 million, primarily due to the ineffective pricing mechanism.

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