For various reasons, a considerable number of gas stations in Nghe An and across the country have recently requested to cease operations. Nationwide, preliminary statistics show that over 100 out of 17,000 gas stations have closed or temporarily suspended business. In Nghe An, since 2021, more than 20 out of 681 gas stations have stopped operating. From the beginning of 2022 to the present, 10 gas stations have requested to close.
The Ministry of Industry and Trade believes that the main reason for this phenomenon is the sharp increase in gasoline and diesel business costs from the end of 2021 to the present. Wholesale gasoline and diesel traders lack sufficient financial resources to import goods, so they mainly maintain enough stock to supply their own distribution systems and maintain required inventory levels. However, the core issue is that wholesale businesses authorized to import gasoline and diesel have offered low discounts, even zero discounts, to retail gas stations; while gasoline prices are regulated by the State. Therefore, many retail gas stations are incurring losses the more they operate!
According to the Ministry of Industry and Trade's assessment, the number of retail gas stations requesting closure is "not a widespread phenomenon." However, in reality, the closure of many gas stations has more or less affected people and businesses. For example, in Yen Thanh district, the closure of many gas stations has somewhat hampered the production and business activities of people and businesses. Specifically, many people and some businesses, who previously bought fuel nearby, now have to travel further, wasting more time and money; not to mention the long wait times if there are many customers…
Most gas stations are located in densely populated areas, close to commercial, medical, and market areas. Therefore, when a gas station stops selling fuel, it inevitably affects many people. The closure of many gas stations has been ongoing since the end of 2022. The Ministry of Industry and Trade has requested that the People's Committees of provinces and cities coordinate with businesses to maintain sales at retail outlets. However, if a business doesn't close down when it's unprofitable or even incurring losses, it will "die." Regarding this issue, many have suggested allowing businesses to determine fuel prices. Furthermore, at a recent conference on "Contributing opinions on the Draft Decree amending Decrees 95/CP and 83/CP on fuel business," many businesses proposed a minimum discount of at least 5-6% of the retail price…
Article by: Nguyen Nguyen
Illustration photo: TL
