Banks give money to wholesale fuel businesses to ensure enough supply of petrol and oil for the domestic market
The cost of transportation of gasoline from abroad to a Vietnamese port will be added to the basic price of gasoline. Specifically, the transportation cost of unleaded petrol for making E5RON92 gasoline will be VND640 a liter, an increase of VND290 a liter. it will be VND1,280 a liter for making RON95 gasoline, an increase of VND560 a liter.
Additionally, the transportation cost of unleaded petrol for mixing into 0.05S diesel oil will be VND730 per liter, increasing VN160 a liter; VND1,740 for mixing into kerosene, increasing VND660 per liter and VND1,290 per kg for producing fuel oil 180CST 3.5S, an increase of VND60 per kg.
For premiums made in the country, the cost of petrol transportation from the refinery to the port was maintained the same as per the Ministry of Finance based on reports of petroleum traders. On the other hand, these expenses were adjusted up on October 7 and will be continuously reviewed and evaluated periodically at the end of 2022, and announced to apply on January 10, 2023.
As for the normative business expenses, wholesale petrol and oil traders’ reports have shown that out of 28 units that submitted performance reports, only two traders including Petroleum Corporation of Vietnam, and Nam Song Hau (South River) Petroleum Company reported an increase in business expenses for the first nine months of 2022. Two other companies Vietnam Oil Corporation and Anh Phat Company reported an increase in costs, but due to increased output, the average cost by output decreased.
The Ho Chi Minh City Petroleum Company Limited, Thanh Le Import-Export Trading Corporation and Tay Nam Petroleum Company Limited S.W.P reported no abnormal changes. The remaining 21 companies do not have specific data on business expenses in the first nine months of 2022.
In related news, the State Bank yesterday required commercial banks to actively balance capital sources to promptly and fully meet the loan capital needs of wholesale petroleum businesses to serve the domestic petroleum purchase and petroleum import according to the approved import quota.
The State Bank of Vietnam (SBV) has just sent 7881/NHNN-TD to Chairpersons of the Board of Directors, and general directors of commercial banks, requesting commercial banks to drastically implement credit solutions, creating conditions to meet the capital needs of wholesale petroleum businesses.
Specifically, the SBV required commercial banks to continue implementing the solutions directed by the Governor of the State Bank in Official Dispatch No. 1509 dated March 15, 2022, on credit granting to key petroleum trading enterprises according to the current credit principles and provisions of law.
Moreover, commercial banks were asked to balance capital sources to promptly and fully meet the loan needs of wholesale petroleum businesses according to the list published on the website of the Ministry of Industry and Trade for the purchase of domestic petroleum and fuel from oversea countries according to the approved import quota with the aim to ensure enough supply of petrol and oil for the domestic market, prevent shortages and profiteering.
The SBV also requested Chairpersons of the Board of Directors, and general directors of commercial banks to closely direct the system as well as strengthen the leadership, inspection and supervision. Commercial banks must give money to wholesale fuel businesses as per businesses’ credit capital needs. Those who are irresponsible leading to delays in providing money to wholesale petrol enterprises will receive penalties.
Commercial bank managers should make monthly reports on the situation of credit granting to petroleum trading and importing enterprises to the State Bank.
During the implementation process, if banks bumped into difficulties, they should promptly report them to the Governor of the State Bank for solutions.
According to the State Bank of Vietnam, petroleum is a strategic and important commodity that directly affects macroeconomic stability and production and daily life of businesses and people. Therefore, since the beginning of 2022, the State Bank has issued many instructions on credit and foreign currency work for petroleum business. Because the development of the world petroleum market is complicated resulting in unstable supply and frequent price fluctuation, the Government and the Prime Minister have set out tasks and solutions to ensure supply for the domestic market.
Following the direction of the Prime Minister in Official Dispatch No. 1039 dated October 2, 2022 on the management and administration of petroleum products, the State Bank of Vietnam requested commercial banks to urgently implement the above solutions to ensure the supply of petroleum to the market.
