Monopoly leads to indifference.
(Baonghean) - Gasoline and oil are strategic commodities with immediate and far-reaching impacts on the entire economy as well as the lives of every family and every individual.
A single price increase or decrease immediately impacts people's finances and income, either positively or negatively. Therefore, the State must maintain control over the petroleum market as a tool to ensure economic stability and, consequently, social stability. However, to date, the domestic petroleum market is still considered by many to be a "maze" due to the lack of clarity and transparency in price determination. Furthermore, the responsibility of state-owned enterprises in contributing to socio-economic stability in the petroleum sector has been unclear, if not negligible. Consequently, there are always conflicting views between the governing body of this sector, the petroleum industry, and the public regarding how to manage and set gasoline and diesel prices.
As you may recall, at a regular press conference in April, the Director of the Domestic Market Department of the Ministry of Industry and Trade expressed his disagreement with the idea that petroleum businesses can arbitrarily increase or decrease fuel prices. He further asserted that petroleum is a sensitive commodity that directly impacts daily life and production, and therefore requires a separate regulatory framework to control it. Even if the power to set prices is returned to businesses, the extent, range, and timing of price adjustments need to be monitored by society to ensure transparency.
He then explained that the adjustments to gasoline and diesel prices since the beginning of the year have been based on the principle of price compensation, mitigating the shock of rising market prices during the Lunar New Year holiday through buffer measures using the price stabilization fund. However, few listeners, especially the general public, agreed with this explanation because, in reality, almost everyone sees that the gasoline and diesel industry always "shocks" consumers with price increases and rarely "shocks" with price reductions. And even when prices do decrease, they are much more moderate compared to the increases.
First of all, it must be said that the petroleum industry has shown great experience in implementing price increase schedules. Specifically, in 2013, the Vietnam National Petroleum Group (Petrolimex) constantly complained about difficulties in policies and exchange rates. And after each complaint, they increased prices, claiming it was a "price adjustment," sometimes by more than a thousand dong per liter. But when prices decreased, they announced it very emphatically as a "price reduction." The number of increases was less than the number of decreases, but overall, gasoline prices still increased steadily. In the end, throughout 2013, the petroleum industry adjusted gasoline prices 11 times, with five increases on March 28, June 14, June 28, July 17, and December 18, with increases of 1,400 dong/liter; 420 dong/liter; 360 dong/liter; respectively. 460 VND/liter… It's worth noting that after those 5 price increases, the total price has risen to 3,220 VND/liter, while the combined increase from all 6 price reductions is only equivalent to 2,160 VND/liter.
By early 2014, Petrolimex continued its old ways, adjusting prices upwards three times in the first four months, with a total increase of 680 VND/liter. Careful observers noted that the corporation "secretly" reported gasoline price fluctuations to the Ministry of Finance every 10 days, requesting further adjustments. While nearly 61,000 businesses nationwide went bankrupt or dissolved in 2013, and even the banking sector, which controls the world's coffers, struggled, with many banks facing mergers, Petrolimex was profitable. And it was a huge profit, with 1,300 billion VND in pre-tax profit from the petroleum sector alone. It's easy to see that the only way Petrolimex achieved such enormous profits was by continuously raising prices.
Despite the difficult economic situation in the country, despite the tight budgets and the shrinking meals of many people after each price increase, the petroleum industry has shown no intention of sharing the burden with its citizens. Simultaneously announcing huge profits, it continues to "quietly" submit requests for price hikes. Information from the Ministry of Finance indicates that on May 5th, the ministry received a document from Petrolimex and Dong Thap Petroleum Trading Company Limited complaining about losses in their petroleum businesses. Fortunately, this proposal was not approved. Unable to secure price increases, the petroleum companies then resorted to demanding increased business cost allowances, additional costs for import losses, inflation, exchange rate differences, and bank interest payments on import taxes upon arrival at the port... All with the aim of "emptying their pockets" to fill their greedy coffers.
So, while the country's economy is reeling from the crisis; purchasing power is depleted; and the living standards of millions of families have plummeted to the brink of ruin, the oil and gas industry still finds ways to raise prices, profiting from the meager pockets of its people. It's truly heartless. Heartless to the point of cruelty. The question here is why they dare to do this, and have succeeded in doing so. Simply put, the oil and gas industry is a monopoly, a one-man market, so everyone is dependent on them, and they don't care about anyone else and can do whatever they want. Over time, this has become a habit, leading to cruelty and indifference.
Duy Huong
