From November 1, the Ministry of Industry and Trade will take charge of managing gasoline prices.

• November 1, 2014 09:48

The Ministry of Finance and the Ministry of Industry and Trade have just issued Circular 39/2014 regulating the method of calculating base prices, the mechanism for forming, managing and using the Price Stabilization Fund (BOG) and regulating gasoline prices, with many new regulations.

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According to this Circular, it allows businesses to increase the standard cost of petroleum business, and at the same time divide this standard into 3 different types. Specifically, the maximum level with the average cost between regions in the country for gasoline has been raised from the current 860 VND/liter to 1,050 VND/liter; kerosene and diesel oil have been increased from 860 VND/liter to a maximum of 950 VND/liter and mazut oil, from 500 VND/kg will increase to 600 VND/kg.

For locations far from ports, warehouses, and petroleum production facilities, the business costs (wholesale, retail) are reasonable and valid (audited by the State or an independent auditor) higher than the above-mentioned level. The main trader shall consider, decide, and be responsible for its own business results. At the same time, it shall decide on the actual selling price in that location to cover reasonable business costs, but the selling price shall not exceed 2% of the published base price at the same time.

The Circular also stipulates that the focal enterprise is allowed to manage the Petroleum Price Stabilization Fund but must account for and monitor it separately with a deposit account opened at a bank. The enterprise will have to regularly deduct from the Petroleum Price Stabilization Fund at the rate of 300 VND/liter (unless otherwise instructed by the inter-ministerial committee). Profits generated from the fund's bank deposits will have to be included in the fund.

Regarding the use of the Petroleum Price Stabilization Fund, in case the factors constituting the fluctuations cause the announced base price to increase by up to 3% compared to the previous base price, but the price increase affects the socio-economic situation and people's lives, the joint ministries will consider announcing the use of the Fund at the same time as announcing the base price.

In case the fluctuation factors cause the base price to increase by 3% to 4% compared to the previous base price, the main trader is entitled to adjust the selling price to increase within the range of up to 3%, and is allowed to use the BOG Fund for the increase exceeding 3% to 4%.

The Ministry of Industry and Trade will preside over this work, the Ministry of Finance will only participate as a coordinating agency.

According to VOV