Minister of Industry and Trade Nguyen Hong Dien. (Photo: SGGP)
Petroleum products to be adjusted appropriately
Minister of Industry and Trade Nguyen Hong Dien said that the supply is increasingly scarce when Europe increases the purchase of petroleum products. The exchange rate of the strong currency to import gasoline has increased highly, making it difficult for importers. The access to foreign currency capital to ensure payment and distribution also faces difficulties because many enterprises do not meet the conditions for loans and bank guarantees. Local supply disruptions in the system continue to take place, especially in big cities. Authorities have taken part. The Ministry of Finance yesterday consulted on adjusting the cost of importing gasoline to Vietnam, and the Ministry of Industry and Trade agreed. It is expected that in the adjustment on November 11, there will be an appropriate adjustment.
According to the Minister, domestic petroleum production meets about 80 percent of demand, but more than half of crude oil still has to be imported. More than 20 percent of finished petroleum products must be imported from abroad, so the fuel supply is still affected.
Up to now, domestic petroleum production and imports have reached 86 percent of the plan, short of about 18,000-19,000 cubic meters. At first, growth was expected at 6 percent, now, growth is forecasted at 8 percent, and the additional demand for petroleum is extremely large. The Ministry of Industry and Trade has coordinated with other ministries and agencies to increase the average annual output by 20 percent. That will be enough to meet the demand.
No licensing for more fuel distributors
Debating with the Minister of Industry and Trade, Mr. Nguyen Anh Tri, a NA delegate of Hanoi, conveyed to the Minister the opinion of voters that according to current regulations, the domestic gasoline price is the global average gasoline price of ten days ago. Thus, domestic gasoline prices are 20 days slower than global ones and outdated. On the other hand, the Ministry of Industry and Trade has issued licenses freely, with a total of 36 key fuel distributors. Consequently, it is very difficult to manage.
The Minister of Industry and Trade informed that the petroleum market is a diverse market, which has revealed its shortcomings, and there would be changes in regulations. However, the world changes every day, every hour, and no matter how hard authorities make effort, there will be a lag from reality.
Regarding the idea that the Ministry of Industry and Trade granted licenses rampantly, Minister Nguyen Hong Dien said that the opinion of the ministry was not to grant more licenses. However, on his desk were dozens of dossiers of qualified enterprises applying for licenses. The Minister assessed that it is necessary to rearrange the system, from focal points to agents and retailers, to reduce the hierarchy.
Minister of Industry and Trade Nguyen Hong Dien said that the supply is increasingly scarce when Europe increases the purchase of petroleum products. The exchange rate of the strong currency to import gasoline has increased highly, making it difficult for importers. The access to foreign currency capital to ensure payment and distribution also faces difficulties because many enterprises do not meet the conditions for loans and bank guarantees. Local supply disruptions in the system continue to take place, especially in big cities. Authorities have taken part. The Ministry of Finance yesterday consulted on adjusting the cost of importing gasoline to Vietnam, and the Ministry of Industry and Trade agreed. It is expected that in the adjustment on November 11, there will be an appropriate adjustment.
According to the Minister, domestic petroleum production meets about 80 percent of demand, but more than half of crude oil still has to be imported. More than 20 percent of finished petroleum products must be imported from abroad, so the fuel supply is still affected.
Up to now, domestic petroleum production and imports have reached 86 percent of the plan, short of about 18,000-19,000 cubic meters. At first, growth was expected at 6 percent, now, growth is forecasted at 8 percent, and the additional demand for petroleum is extremely large. The Ministry of Industry and Trade has coordinated with other ministries and agencies to increase the average annual output by 20 percent. That will be enough to meet the demand.
No licensing for more fuel distributors
Debating with the Minister of Industry and Trade, Mr. Nguyen Anh Tri, a NA delegate of Hanoi, conveyed to the Minister the opinion of voters that according to current regulations, the domestic gasoline price is the global average gasoline price of ten days ago. Thus, domestic gasoline prices are 20 days slower than global ones and outdated. On the other hand, the Ministry of Industry and Trade has issued licenses freely, with a total of 36 key fuel distributors. Consequently, it is very difficult to manage.
The Minister of Industry and Trade informed that the petroleum market is a diverse market, which has revealed its shortcomings, and there would be changes in regulations. However, the world changes every day, every hour, and no matter how hard authorities make effort, there will be a lag from reality.
Regarding the idea that the Ministry of Industry and Trade granted licenses rampantly, Minister Nguyen Hong Dien said that the opinion of the ministry was not to grant more licenses. However, on his desk were dozens of dossiers of qualified enterprises applying for licenses. The Minister assessed that it is necessary to rearrange the system, from focal points to agents and retailers, to reduce the hierarchy.
