New regulations on stabilising fuel retail prices drafted

New regulations on stabilising fuel retail prices drafted

The industry and trade ministry proposes using the Fuel Price Stabilisation Fund to curb sharp petrol and diesel price rises that could threaten inflation control and economic stability.

The proposal has been included in a draft circular detailing some provisions of the Decree on Petroleum Business. —VNA/VNS Photo

The Ministry of Industry and Trade of Việt Nam has proposed a mechanism allowing the use of the Fuel Price Stabilisation Fund to stabilise domestic fuel retail prices if they rise sharply and threaten economic stability.

The proposal would allow the fund to be used when prices fluctuate abnormally and increase continuously for a month with a total rise of 20 per cent or more, posing risks to macroeconomic stability, inflation control and people’s livelihoods.

The proposal is included in a draft circular detailing several provisions of the Government’s decree on petroleum business.

Under the draft, the Ministry of Industry and Trade, in coordination with the Ministry of Finance and other competent ministries and agencies, will collect, compile, analyse and assess petroleum supply and demand, global prices, factors forming the base price, retail price levels, inventory, consumer demand and the production and import situation over a specified period.

The ministry will also assess the impact on socio-economic development goals, production, business activities and people’s lives before preparing a price stabilisation report. The report will be submitted to the Ministry of Finance for compilation and reporting to the Government for a decision on price stabilisation policies.

The stabilisation of gasoline and diesel prices will follow principles stipulated in the Law on Prices, the Government’s resolution on price stabilisation plans and other relevant legal regulations. Based on the Government’s policy, the Ministry of Industry and Trade will implement the measures and guide provincial People’s Committees in carrying them out.

In cases where competent authorities declare a state of emergency, an incident, disaster, natural calamity or epidemic and retail gasoline and diesel prices fluctuate abnormally, the ministry will coordinate with relevant ministries and agencies to implement price stabilisation measures in line with regulations. 

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