Strengthen price control, stabilize the market

Gasoline price decrease, goodschemicalstill "anchored high"

From 3:00 p.m. on August 2, each liter of gasoline decreased by nearly 500 VND, and oil products also decreased by 710-950 VND (except for fuel oil). Thus, after the adjustment by the Ministry of Industry and Trade - Ministry of Finance, each liter of RON 95 gasoline decreased to 25,600 VND (down 470 VND); E5 RON 92 has a new price of 24,620 VND (down 450 VND). This is the 4th consecutive price reduction since the end of June until now, bringing the price of this product to the same level as in February.

Consumers expect prices to fall after consecutive drops in gasoline prices. Photo: Thu Huyen

However, although gasoline prices have dropped quite sharply compared to June,prices of essential consumer goodsstill high. Surveys at some markets in Vinh city such as Phong Toan market, Hung Dung market, Quan Lau market... show that beef and pork prices are quite high.

Ms. Hue, a pork trader at Phong Toan market, Ha Huy Tap ward, said that the current selling price of ribs and belly is 120,000 - 130,000 VND/kg; lean shoulder is 140,000 VND/kg, a significant increase compared to 2 months ago, when it was only about 90,000 - 100,000 VND/kg. Explaining why gasoline prices have decreased but pork prices have not decreased, she said: This item mainly depends on the price of live pigs. Since the beginning of July, the price of animal feed has increased and the Chinese market has increased its purchase of pork, causing domestic supply to be limited. I don't know why, I only know that the import price is high, so the selling price is like that.

Market prices remain high despite four consecutive gasoline price decreases. Photo: Thu Huyen

Ms. Nguyen Thu Ha - owner of a convenience store in Hung Phuc ward said: When gasoline goes up, the price of goods goes up, when gasoline goes down, there is no sign of a decrease. Saigon, Hanoi, Huda beer... still increases steadily, increasing by 5,000 - 10,000 VND/carton every month; Toilet paper, instant noodles increase by 5-7%; cooking oil increases sharply (for example, Simply cooking oil, 2-liter bottle, used to be only 85,000 VND, now it is 130,000 VND) and there is no sign of a decrease. "I have been selling groceries for a few years now, in general, the price has only increased, not decreased. When asked, the importers said that due tohigh input material prices, so the product price increased" - Ms. Ha confirmed.

The same goes for many other goods and services. Some breakfast restaurants such as beef noodle soup and fish noodle soup still keep their prices high; HB fish noodle shop in Ha Huy Tap ward went from 30,000 VND, last year it went up to 35,000 VND, increased to 40,000 VND/serving when gasoline prices were high and now gasoline prices have decreased but the price of fish noodle soup remains "stable". Many customers were surprised to hear that the shop owner still charged the same price.

Retail gas prices have been adjusted down from 1,500 - 1,542 VND/kg. Photo: Thu Huyen

The sharp drop in gasoline and oil prices is expected to help cool down the prices of many essential consumer goods, as these are the input fuels for production and play a decisive role in transportation costs. However, contrary to calculations, many goods on the market remain unchanged in price or only decrease slightly; except for some items such as reduced steel prices, retail gas prices have been adjusted down from 1,500 - 1,542 VND/kg, corresponding to each 12 kg gas cylinder decreasing by an additional 18,000 - 18,500 VND, from August 1.

Increasestrongcontrol prices of goods and services

Explaining the current price level, many owners of production and supply establishments said that gasoline prices only account for a small proportion of the cost structure of the unit, while all other inputs have increased in price, so it is impossible to reduce the selling price when gasoline prices decrease. Some livestock establishments said that the high price of meat and eggs is mainly due to the sharp increase in the price of animal feed compared to last year. However, that explanation is not really convincing because the increase in gasoline prices is always the first excuse to "follow the rain" and increase the price of goods and services!?

The recent increase in poultry egg prices is explained by the increase in feed prices. Photo: Thu Huyen

Faced with the current price developments of essential goods and services, the Government and the Price Management Steering Committee have implemented many solutions to stabilize the prices of goods and services. Implementing Notice No. 209 dated July 18, 2022 of the Government Office, the Provincial People's Committee issued Official Dispatch No. 5515/UBND-KT dated July 22, 2022 assigning the Department of Finance to preside over and coordinate with relevant agencies, units and localities to proactively implement the instructions of Deputy Prime Minister Le Minh Khai, and at the same time advise the Provincial People's Committee to implement according to regulations. The Department of Industry and Trade also issued a document directing units and localities in the province to survey and stabilize market prices.

Recently, Prime Minister Pham Minh Chinh signed and issued Official Dispatch No. 679/CD-TTg dated July 31, 2022 on strengthening price management and control measures. In order to continue to promote price management and control,price stabilizationessential goods and services that impact the consumer price index and affect people's lives, production and business activities of organizations and individuals; especially the control of prices of goods and services after the sharp decrease in gasoline and oil prices in recent management periods, the Prime Minister requested Ministers, Heads of ministerial-level agencies, Chairmen of People's Committees of provinces and centrally-run cities to continue to promote the organization and implementation of close monitoring of market developments, promptly implement solutions to ensure domestic supply-demand balance, stabilize prices, and prevent shortages, hoarding, speculation, and unreasonable price increases.

The reason why pork prices are still high is explained by the increase in animal feed and limited supply of live pigs. In the photo: Pig farm in Yen Thanh district. Photo: Thu Huyen

For goods directly affected by gasoline and oil prices such as passenger transport, freight transport, and logistics services: organize a review of enterprises' price declarations to assess price adjustments in accordance with fluctuations in input factors, especially gasoline and oil costs in price formation factors; in cases where prices can be reduced, require units to promptly declare price reductions. Strengthen inspection of compliance.List price, collect service fees at the correct listed prices of businesses, strictly handle acts of taking advantage of unreasonable price increases, and structuring additional fees outside the price to collect higher than the declared and listed prices.

For essential goods and services that are indirectly affected by gasoline and oil prices, have an impact on the consumer price index and affect people's lives, production and business activities of enterprises: strengthen inspection and control of compliance with the law on prices, measures for declaring and posting prices, strictly handle cases of taking advantage to unreasonably increase prices. Proactively inspect price formation factors according to the provisions of the Law on Prices and according to authority when goods have unusual fluctuations and handle violations according to regulations...

The Prime Minister's dispatch also requested that, regarding pork and animal feed: The Minister of Agriculture and Rural Development directs and guides localities, functional forces, organizations and individuals engaged in pig farming to continue focusing on promoting production, breeding, herd restoration, processing, regulating and ensuring supply to stabilize pork prices; carry out disease prevention and control; organize appropriate and sustainable herd restoration, raise animals according to a closed and biosafety model; promote breeding stock production, ensuring that the total pig herd nationwide meets domestic demand in the short and long term.

In the coming time, inflationary pressure will still depend on the price of raw materials, fuel, and materials, especially the unpredictable price of gasoline and oil, food, agricultural supplies, construction materials, transportation, etc., posing challenges for price management and operation. Therefore, it is necessary to drastically implement solutions, grasp the situation to proactively handle, ensure people's lives and production and business activities, thereby contributing to stabilizing the macro economy and promoting growth.