Nghe An: Maintaining gasoline supply to the market
(Baonghean.vn) - The world crude oil price has increased, at times reaching over 130 USD/barrel, along with the Nghi Son Refinery cutting its capacity, causing many difficulties in supply. Nghe An has had many solutions to ensure the supply of gasoline to meet production and consumption...
DIFFICULTIES FROM SUPPLY
Gasoline prices increased sharply due toworld crude oil pricesThe price of gasoline has increased, along with the Nghi Son Refinery cutting its capacity from 105% to 80%, currently running at 55%-60%; so even though the Ministry of Industry and Trade directed the Binh Son Refinery to increase its capacity to 105%, it is still not enough to compensate for the supply. This reality has affected the delivery of goods to domestic petroleum traders according to the commitments and signed contracts.
Currently, the Ministry of Industry and Trade regularly strengthens coordination with the Price Management Department of the Ministry of Finance to manage gasoline prices closely following the world gasoline price developments, in accordance with the domestic gasoline supply and demand developments to ensure the harmony of interests between the entities participating in the gasoline market. Along with that, encourage businesses to maintaingasoline supplyfor the market, limit speculative acts of hoarding or smuggling of gasoline across the border to neighboring countries.
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| Petroleum enterprises in the province are committed to providing enough petroleum supply for the market. Photo: TH |
Key petroleum trading enterprises such asVietnam National Petroleum Group, Military Petrochemical Joint Stock Company, Vietnam Oil Corporation (PVOil), Thien Minh Duc Group Joint Stock Company, etc. have performed well in ensuring the supply of gasoline in their distribution system, while increasing imports to compensate for the shortage of other gasoline trading and distribution centers.
The Ministry of Industry and Trade signed Decision No. 242/QD-BCT dated February 24, 2022 on assigning additional petroleum import output in the second quarter of 2022, in which the Vietnam National Petroleum Group (Petrolimex) was assigned to import an additional 1,065,567 m3; Vietnam Oil Corporation (PVOil) imported 488,688 m3; Thien Minh Duc Group Corporation imported 144,152 m3and Military Petrochemical Joint Stock Company imported 41,636 m3.
According to forecasts, from the end of March 2022, when the capacity of Nghi Son Refinery increases, along with the continuous import volume from key traders, the situation of gasoline supply will gradually be improved, key traders and gasoline distributors in the province will proactively develop plans and diversify supply sources to ensure gasoline supply to serve consumption and production needs.
In the past time, domestic gasoline prices in 2021 have been adjusted 24 times, of which gasoline prices increased 16 times, decreased 5 times and remained unchanged 3 times. In early 2022, gasoline prices increased 6 times in a row with the highest price increase in the past 8 years. Since the beginning of 2022, E5RON95 gasoline has increased by more than 5,800 VND/liter, RON95 gasoline increased by nearly 6,000 VND/liter, and Diesel oil increased at the highest level of 7,000 VND/liter.
NGHE AN ENSURES SUPPLY FOR THE MARKET
In Nghe An, there are currently 08 key traders distributing petroleum in the province. The petroleum supply source of the petroleum distribution system in the province is mainly through the Vietnam National Petroleum Group, Thien Minh Duc Group Joint Stock Company and mainly through Ben Thuy; Nghi Huong; Nghi Son warehouses. The goods source of the Vietnam National Petroleum Group is mainly through Dung Quat and Nghi Son factories, Van Phong warehouse and internally moved from warehouse B12.
According to Nghe An Department of Industry and Trade, the average demand for gasoline and oil in the province is from 58,000m3- 60,000m3/month. Of which 55% of the market share comes from Nghe An Petroleum Company, 30% from Thien Minh Duc Group Joint Stock Company and the remaining 15% comes from other traders (Petrolimex Nghe Tinh Transport and Service Joint Stock Company, Military Petroleum Company, Tan Xuan Company Limited...).
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| The average demand for gasoline and oil in the province is from 58,000m3- 60,000m3/month. Photo: TH |
According to Mr. Vo Anh Tuan - Deputy Director of Nghe An Petroleum Company, since the beginning of 2022 until now, no gas station of the Company's customers has had to close due to lack of resources. In the coming time, the company will still ensure a full and timely supply of gasoline for the market such as retail at affiliated gas stations, industrial customers and the distribution system. The Company is still guaranteed by the Group's supply from domestic refineries, so the source is currently ensuring the needs of all its customers.
Petroleum suppliers in Nghe An are committed to always maintaining a guaranteed supply and stabilizing the market. The petroleum supply in the province is proactively planned by key traders and distributors, so the quantity of goods is guaranteed to be sufficient for petroleum stores under the enterprises and retail stores under the dealer/franchise system to ensure serving production and consumption needs in the area. However, according to the reflection of petroleum stores, currently the discount of some petroleum stores in the area is only at 80-200 VND/liter, even in the situation of almost no sales discount for petroleum products, leading to retail losses; many petroleum retail stores want to sell in moderation or stop selling to reduce losses.
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| Petroleum businesses in Nghe An province have developed plans to supply petroleum. Photo: TH |
Implementing the direction of the Ministry of Industry and Trade, the Department of Industry and Trade of Nghe An has issued many documents directing and urging the People's Committees of districts, cities, towns, the Market Management Department, the Department Inspectorate and petroleum traders to ensure the supply of petroleum in the area. Up to now, the Department of Industry and Trade has received written commitments from many petroleum traders in the area, according to which the enterprises committed to strictly implementing the provisions of Decree No. 83/2014/ND-CP dated September 3, 2014 of the Government on petroleum trading and Decree No. 95/2021/ND-CP dated November 1, 2021 of the Government amending and supplementing a number of articles of Decree No. 83/2014/ND-CP.
Discussing this issue, Mr. Pham Van Hoa - Director of Nghe An Department of Industry and Trade said: In the face of fluctuations in the price of gasoline, the Department has requested gasoline businesses to commit to strictly comply with regulations, maintain gasoline supply in the system and at retail stores, list prices and sell at the listed prices. Businesses commit to ensuring gasoline supply to serve the production, business and consumption needs of people and businesses in all situations; Do not hoard goods, speculate, hoard, spread false information for profit, do not reduce sales time; Do not arbitrarily stop selling without approval from the authorities.
“In addition to inspecting compliance with the law in petroleum trading activities in the area, the Department also requires petroleum trading enterprises in the province to proactively develop plans to ensure and publicize the supply of petroleum to the market in the coming time. Units must maintain operations at petroleum retail stores, provide timely and adequate petroleum to meet consumption and production needs in the area,” affirmed Mr. Pham Van Hoa - Director of Nghe An Department of Industry and Trade.
According to the provisions of Article 27, Decree 95/ND-CP effective from January 2, 2022, gasoline prices will be adjusted every 10 days, on the 1st, 11th and 21st of each month. In case of unusual fluctuations in gasoline that affect socio-economic development and people's lives, the Ministry of Industry and Trade and the Ministry of Finance will report to the Prime Minister for consideration and decision.
