Regulations on controlling number of key traders of petrol and oil trading must be issued

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Illustrative photo: Nguyen Thanh

According to the Ministry of Finance, regarding the time between two consecutive adjustments of petrol and oil prices, the Ministry of Finance agreed with the Ministry of Industry and Trade to reduce the time from 15 days to around 10 days to help control the domestic petrol and oil prices to approach the world’spetrol and oil prices, to overcome the limitation of supply-demand imbalance due to the price lag in case of rapid fluctuations of the world’s petrol and oil prices in a short period of time.

Regarding the fluctuation rate of the base price between two consecutive adjustments, it is necessary to report to the Prime Minister on the basis of the formula for base price calculation and the mechanism of using the Price Stabilisation Fund specified in the decree and to increase the sense of initiative for the price management agency, ensuring timely adjustment and the Ministry of Finance agrees with the Ministry of Industry and Trade to increase the fluctuation rate from 7% to 10%.

However, the Ministry of Finance requests the Ministry of Industry and Trade further assess and clarify the difficulties, problems, limitations and impacts on the consumer price index so that the Government could have a basis for consideration and decision.

Regarding the formula for petrol and oil price calculation from domestic sources, the Ministry of Finance agrees that the option that domestic petrol price prices is calculated on the basis of world’s petrol and oil prices and other costs.

Regarding the Petroleum Price Stabilisation Fund, according to the Ministry of Finance, although there are still a number of different opinions, from the results of the recent implementation, the Price Stabilisation Fund is still an economic tool, a feasible and effective solution and consistent from laws to sub-law documents, helping stabilise petrol and oil prices, thereby stabilising general price level.

At the meeting on July 31, after listening to the report, Deputy Prime Minister Trinh Dinh Dung also concluded on the necessity of the Petroleum Price Stabilisation Fund.

In fact, due to the use of the Petroleum Price Stabilisation Fund associated with the petroleum price management mechanism, while the base price remains, it is necessary to maintain this fund as an economic measure to contribute to the stabilise petrol and oil prices. Therefore, the Ministry of Finance agreed with the Ministry of Industry and Trade to maintain the fund.

Regarding tax administration, the Ministry of Finance said the application of e-invoices and e-invoice data connection will be launched from July 1, 2022 instead of November 11 this year. Only a few petrol and oil trading companies have applied e-invoices such as Petrovietnam Oil Corporation, Petrolimex and their member companies in the petrol and oil trading system.

If only a few key enterprises apply e-invoices while most of the remaining firms have not, it is difficult to build a synchronous invoice database to control the input and output of petrol and oil enterprises and prevent fraud.

Recent petrol and oil related cases showed that fraud risk mainly came from enterprises that are commercial intermediaries in petrol and oil trading

Meanwhile, petrol and oil trading is a conditional business line, so to promote enterprises to apply e-invoices before 2022, the Ministry of Finance requested the Ministry of Industry and Trade to adda regulation on application of e-invoices and data connection with the tax agency as one of conditions for petrol and oil trading to the revised decree (it can be six months since the revised decree takes effect).

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In addition, the Ministry of Finance requested the Ministry of Industry and Trade to review and issue regulations to control the number of key petrol and oil traders to avoid quick development.