Nghe An: Due to too low discounts, some gasoline and oil retail businesses have asked to close.

Yen Thanh petrol and food store, block II, Yen Thanh town, has just asked the authorities to stop operating, and the Department of Industry and Trade has revoked its business license. Photo: Van Truong

As recently, Yen Thanh Gasoline and Food Store, Block II, Yen Thanh Town, has requested to stop operating. Through investigation, it is known that due to too many difficulties, this store recently requested the competent authority to stop operating from January 10, 2023 and currently this store has had its business license revoked by the Department of Industry and Trade.

Mr. Nguyen Van Hoanh, owner of the Phuc Thanh Commune Gas Station, Yen Thanh District, shared: Previously, we operated 2 gas stations, but last year the more we sold, the more we lost, the discount was only 200-400 VND/liter of gasoline, not including the loss, rental costs, transportation costs, and employee hiring costs. Each liter of gasoline sold was not enough to cover expenses, so from May 2022, we would like to stop operating the gas station in Van Thanh Commune.

According to the report of the Department of Industry and Trade of Yen Thanh district, Yen Thanh district has 50 gas stations. From 2022 to now, 6 gas stations have requested to stop operating due to business losses and have had their business licenses revoked by the Department of Industry and Trade.

Faced with the above situation, the People's Committee of Yen Thanh district is coordinating with relevant departments to inspect and review gas stations to remove difficulties and obstacles, to ensure timely supply of gasoline to the people.

A gas station in Hoa Thanh commune, Yen Thanh is serving customers. Photo: Van Truong

In Do Luong district, many gas stations are struggling to survive. The owner of a gas station in Do Luong town shared: The discount rate of the store is only 200 VND/liter of gasoline, which is too low. Every day we sell 600-800 liters of gasoline and oil, while having to hire 3 workers and rent premises, which means a loss of over 10 million VND/month. In the near future, we will have to lay off 2 more workers because we cannot afford the costs. For now, we are holding on day by day.

A gas station owner in Do Luong district confided: The problem is that in the gas business, retail businesses do not have the right to demand discount levels, the source only gives out as much as they want.

A representative of the Economic Infrastructure Department of Do Luong District added: Do Luong District currently has 30 gas stations, all of which are operating. Due to low discounts, many retail gas stations are having to operate with even more difficulties.

The district's functional agencies have strengthened inspection and supervision at retail gas stations to ensure supply to the people. In case the store temporarily suspends operations, there must be a legitimate reason, a written report must be sent to the Nghe An Department of Industry and Trade stating the reason for the suspension of sales, and sales may only be suspended with written approval from the Department of Industry and Trade.

Some gas station owners in Quynh Luu district shared more: To establish a retail gas station, you have to take care of many procedures, apply for investment policy, planning, change of land use purpose, construction permit, connection permit, fire prevention and fighting permit, environmental permit, certificate of inspection of measuring equipment, certificate of eligibility for gas business...

Not to mention the billions of dollars in infrastructure investment such as stores, oil tankers, storage tanks, houses... Therefore, even though the more we sell, the more we lose, we still have to operate. If we close, we don't know how to pay back the bank loan.

According to the report of the Department of Industry and Trade, Nghe An province has 681 gas stations currently operating normally. From 2021 to now, more than 20 gas stations have stopped operating due to business losses.

The Department of Industry and Trade is currently continuing to direct key traders and petroleum distributors in the area to proactively balance domestic production and import sources to ensure a continuous supply of petroleum, provide adequate petroleum for franchise traders, general agents, and petroleum retail agents, ensure no shortage, and regularly inspect, monitor, and direct to grasp the situation.

Review and summarize arising problems related to petroleum supply, management and operation of petroleum activities; report, advise and propose to the Provincial People's Committee reasonable and timely direction and operation plans.

A gas station in Do Luong town is operating. Photo: Van Truong

The Department continues to coordinate with the Provincial Market Management Department and functional forces to strengthen inspection, examination, control and supervision of petroleum business activities in the area to clarify the reasons for the temporary suspension of operations of petroleum retail stores, resolutely handle them according to regulations; promptly detect, prevent and strictly handle subjects with violations of the law in petroleum business activities.

According to experts, petroleum is a commodity under the management of the State and must ensure the goal of harmonizing the interests of the State, businesses and people. To avoid the situationdisruption of petroleum supply, management agencies need to be more flexible in management as well as have regulations on fixed discount rates for retail businesses as they are currently applying the standard profit rate for key businesses. Retail businesses must be profitable so that they can participate in regulating the market.

Van Truong