Ministry inspectors check gas fill stations in HCMC and Mekong Delta
Ministry inspectors will check fuel filling stations in HCMC and the Mekong Delta region for 15-20 days because there has been an increase in petrol hoarding ahead of the government’s new prices of the item causing instability in the petroleum market.
According to the Inspectorate of the Ministry of Industry and Trade, three specialized inspection teams will pay unscheduled inspection to key businesses on the observance of the law in petroleum business to promptly handle violations.
Among the 33 enterprises inspected in this time, inspectors will work with large companies such as Vietnam National Petroleum Group (Petrolimex), Vietnam Oil Corporation. Inspectors from the Ministry of Industry and Trade announced to focus on clarifying petroleum business licensing activities, relevant documents such as business licenses, certifications of the Ministry of Industry and Trade for eligible units.
In the past time, because of rampant certificate issuance, there have been many cases of illegal business, trading in fake gasoline, trading invoices.
Inspectors from the Domestic Market Department under the Ministry of Industry and Trade and the Inspectorate of the Ministry of Industry and Trade will conduct a general inspection of key exporters of petrol and oil, requiring these businesses to operate in accordance with the content of the licenses.
Moreover, these exporters were asked to ensure the supply of petroleum (including domestic and imported sources), to meet people’s needs and the economic development.
Inspectors announced both scheduled and unexpected inspections nationwide. Any business establishments don’t import petrol and oil to supply the market within six months or more from the time of inspection in February, authorities will temporarily suspend and withdraw their license. The Vietnam Directorate of Market Surveillance will organize inspections once every day or every two days to promptly detect and handle wrongful agents and petrol stations.
Inspectors from the Directorate of Market Surveillance in HCMC, the city Department of Industry and Trade and relevant agencies toured to some fuel filling stations; some of which displayed a sign of No fuel while other venues announced no petrol but oil. A gas station in Pham Van Chieu Street in Go Vap District has seen a long queue of drivers waiting for their turn to buy liters of petrol.
In prior press conference, a representative of the Department of Industry and Trade announced five petrol retailers have sometimes experienced petrol shortage and oil shortage because of low discount from distributors. Therefore, some fuel shops stopped operation temporarily to cut losses.
Petrol prices may continue to rise sharply
According to the calculations of enterprises and the Department of Domestic Market, because the world crude oil price in the past 10 days continues to increase, it is forecast that the retail gasoline price in the domestic market will continue to be adjusted on February 21, the fourth consecutive increase since the beginning of 2022. The increase can be up to VND1,000 a liter.
Currently, each barrel of WTI oil has exceeded US$94, the price of Brent oil has increased by over $ 96 a barrel, it is forecast that the crude oil price may exceed $100 a barrel due to world geopolitical fluctuations, tensions between Russia and Ukraine. Worse, the Organization of Petroleum Exporting Countries (OPEC) still maintains its production plan of 400,000 barrels per day.
According to Director of the Domestic Market Department Tran Duy Dong, to reduce the impact of world gasoline prices on the domestic petroleum market, the Ministry of Industry and Trade has requested production establishments, wholesalers and distributors to provide the quantity of petrol they need for domestic oil refineries and the actual amount of petroleum that the domestic production units have delivered from the beginning of 2022 up to now.
Based on this data, the Ministry of Industry and Trade will calculate domestic production sources and assign minimum import quotas to ensure sufficient supply for the market even in the worst scenario.
At the same time, the Ministry of Industry and Trade also asked the Government to allow the inter-ministries of Industry and Trade - Finance to flexibly control domestic gasoline prices to approach world prices. In difficult supply conditions, it is allowed to use the national petroleum reserve fund when necessary.
