Over 700 gas companies are demanding compensation from the Ministry of Industry and Trade.

Gas businesses argue that lowering the business conditions stipulated in Decree 19 would put them in a difficult situation, and the Ministry of Industry and Trade would be held responsible if that were to happen.

Recently, a number of businesses representing over 700 gas trading companies in the northern region submitted a petition to Prime Minister Nguyen Xuan Phuc, Minister of Industry and Trade Tran Tuan Anh, and relevant ministries and agencies, requesting that the regulation lowering the business standards for gas trading not be amended.

Illustration photo: Internet

Mr. Le Xuan Tuyen, Director of Viet Xo Gas Joint Stock Company, representing 300 gas businesses in Thai Binh, stated that according to Decree 107 on gas business conditions, Level 1 gas distribution businesses must have storage tanks of 800m3 and 300,000 gas cylinders. To meet this regulation, businesses have borrowed a large amount of money from banks for investment and business operations.

However, with the issuance of Decree 19 replacing Decree 107, the lowering of regulations on LPG storage tanks and cylinder quantities will create many problems. Currently, too many businesses that do not meet these conditions are now freely participating in the market, which is tantamount to acknowledging the previous illegal and unqualified business practices of these traders. This leads to widespread oversupply, making it difficult for the State to control and posing a fire and explosion safety risk.

Furthermore, Mr. Tuyen added that the gas market currently suffers from issues such as the misappropriation of gas cylinders, tampering with the valve stems, and grinding down the markings, affecting quality, brand reputation, and safety. Many filling stations do not meet the necessary operating conditions and violate trademark registration regulations, leading to fires and explosions without a basis for handling and prosecuting those responsible.

Therefore, Mr. Tuyen proposed maintaining the regulations on ownership of 300m3 storage tanks and 100,000 gas cylinders as stipulated in Decree 19. In addition, he suggested retaining the condition that gas filling stations must be owned by the primary gas distribution enterprise. This aims to hold the primary enterprise accountable for the operations of the gas filling stations under its management.

Besides Viet Xo Gas, Thanh Hoa Petroleum Company Limited, representing 450 gas businesses in Thanh Hoa province, also submitted a similar petition to the Prime Minister and relevant ministries and agencies. In addition to similar proposals to their counterparts in Thai Binh, Thanh Hoa businesses argue that if the conditions stipulated in Decree 19 are further lowered, the Ministry of Industry and Trade should consider compensating them for bank loans that they have invested to meet the Decree's regulations properly and strictly.

Previously, at the end of September 2016, at the conference "Gathering opinions from organizations and individuals on regulations and administrative procedures in the Industry and Trade sector," more than 40 businesses expressed their dissatisfaction with Decree 19. These businesses argued that the regulations of this Decree would lead to the elimination of new small and medium-sized enterprises (SMEs) from entering the market, especially many businesses that have already invested and operated legally and effectively.

According to Kinhtedothi