No adjustment of petrol prices during holidays

The cycle of announcing the base price and the plan to adjust gasoline prices coincides with the holiday, so the joint ministries will postpone the announcement to May 4.

Regarding the cycle of announcing the base price and adjusting the price of gasoline and oil in the next 15-day cycle (from April 13, the most recent price adjustment), on the afternoon of April 27, at the regular press conference of the Ministry of Industry and Trade, Mr. Nguyen Van Quyen, Director of the Domestic Market Department (Ministry of Industry and Trade) informed that according to the circular of the Ministry of Finance - Ministry of Industry and Trade, after the 15th day of the management cycle, the Ministry will announce the price and the price adjustment plan. If the price adjustment date falls on a holiday, the first working day after the holiday will be the day of announcing the base price and adjusting the price of gasoline and oil.

Thus, from April 13, the most recent adjustment of gasoline prices, according to the next cycle, April 29 will be the day the Ministry of Finance - Industry and Trade jointly announces the base price and adjusts gasoline prices. However, the announcement and price adjustment date coincides with a 6-day holiday. Therefore, "we will announce the base price on May 4 after the holiday", Mr. Quyen affirmed.

There will be no adjustment in gasoline prices during the holidays. (Photo: KT)

Mr. Quyen also added that recently, world oil prices (especially since February) have been extremely complicated. Especially in the past few days, oil prices have increased sharply, at times reaching over 4 USD/barrel.

“The continuous increase in world oil prices will lead to many impacts on the basic gasoline price. The joint ministries are continuing to closely monitor the developments of gasoline prices, especially during the holidays, to calculate and discuss with the joint ministries, thereby having a reasonable management plan in accordance with the spirit of Decree 83 of the Government,” Mr. Quyen pointed out.

The representative of the Domestic Market Department also said that the price stabilization fund (BOG) is currently being set aside to compensate for the gasoline price of nearly 1,000 VND/liter. In the near future, the use of the BOG fund, taxes and fees must still comply with the principle of increasing and decreasing, closely following world prices but trying to adjust appropriately, avoiding "shocking" increases and decreases, and especially taking into account factors of production, economy, inflation, etc.

Discussing the increase in environmental tax on gasoline and oil applied from May 1, 2015, coinciding with the reduction in gasoline and oil import tax, how the joint ministries will handle the tax difference according to the 30-day reserve regulation, Mr. Quyen said that this has been publicly announced by the joint ministries, with consultation from the Petroleum Association, and businesses participating in the gasoline and oil market have received sharing and consensus.

Accordingly, from the perspective of the State and enterprises sharing, in the 30-day circulation reserve cycle, enterprises should have to pay the full environmental tax, however, because in the first 15 days, enterprises had to sell gasoline and oil for the next 15 days, enterprises only have to pay 35% environmental tax in the first 15 days, this 35% tax will be reduced accordingly in the next 15 days to ensure consistency with the time of reducing gasoline and oil import tax.

Regarding the opinion of many National Assembly Deputies that it is necessary to gradually shift the petroleum market to operate under a competitive market mechanism, Mr. Quyen said that the roadmap of the economy is still operating under a market mechanism with state management, and we are now moving towards a competitive environment.

“Decree 83 is establishing conditions to lead to a competitive petroleum market. When the market has a large market share capable of participating in real competition, the State will not have to manage prices, and the price of petroleum will be decided by the market. However, currently, due to the nature of sensitive commodities and the transition period towards a competitive market, there must still be State management and price control,” Mr. Quyen expressed.

Sharing more about this, Mr. Quyen said that although the state controls the process of regulating gasoline prices, there is still a basis for a roadmap to form a competitive gasoline market. According to regulations, the state is gradually training businesses to get used to autonomous mechanisms at certain levels./.

According to VOV