"Businesses should keep calm when there are only a few months of negative fuel price stabilization funding"!

	Raising the EPT from 2019 not to affect CPI 2018
	Petroleum Price Stabilization Fund remains 5,222.545 billion VND
	Petroleum Price Stabilization Fund remains over 3,975 billion VND

Mr. Tran Huy Dong

Recently, when the Nghi Son refinery and petrochemical plant malfunctioned, affecting petroleum supply, how has the fuel source been compensated?

After the supply from Nghi Son Refinery and Petrochemical Factory had problems, the Ministry of Industry and Trade met with key enterprises to find ways to import to compensate. Normally, a contract must be signed before 45 days but unexpectedly, many shipments must be imported from Korea at a higher price, even from other markets with higher tax rates. The import tax on petroleum from South Korea is 10%, to ensure the supply of goods for the domestic market, and to ensure the reserve of petroleum for 30 days according to Decree 83.

Vietnam Oil and Gas Group (Petrolimex), Vietnam Oil Corporation - CPTP (PVOil) lost revenue during this period but performed political tasks, so they still had to import to continue sales.

Many points of view that businesses suffer from losses are due to operating inadequacies. What do you think about this?

Vietnam is a socialist-oriented market economy. Principles for operating gasoline prices are to ensure respect for market principles and the administration of the State, harmonizing the interests of people, businesses and the State. Enterprises here have production enterprises and distribution companies, ie clues. While operating, the macro objectives of the state are directed such as for the Consumer Price Index (CPI). We work in this way with the opinion of the Prime Minister and the Prime Minister considering and deciding on the management of gasoline prices.

Our view is to put the interests of the country above all, put the interests of the people and consumers first, not just for the sake of businesses. Of course, the benefits of our business must also be balanced, ensuring harmonious interests of people, businesses and the State. There is a time when the interests of the country are prioritized, and consumers are placed higher than businesses; there are times when the benefits of businesses are more favored, but in general, they must always operate. Making policy always prioritizes the majority and ensures the macro objectives of the Government.

In the latest operating day of petrol and oil price on March 18, which is characterized by a rise in electricity prices over a period of more than 2 years and an increase of 8.36%, from March 20, the Ministry of Industry and Trade reported to the Prime Minister and Deputy Prime Minister to make a decision. It was supposed to have information about operating gasoline prices for 3pm, but on March 18, it was 8pm because at 5:30pm the Deputy Prime Minister chaired a meeting with the Ministry of Industry and Trade. The ministry decided to keep gasoline at the same prices.

Issues of enterprises reflected to the Ministry of Industry and Trade are clear, but only partly. Petroleum prices are not only for the benefit of some businesses, but also for the people and the interests of the nation and the country, not to break the State's goal is to control CPI below 4%. Particularly, petroleum, electricity and water still affect the first and second round. Ministry of Industry and Trade also cooperates with the General Statistics Office (Ministry of Planning and Investment); The Price Management Department (Ministry of Finance) calculates CPI.

Ministry of Industry and Trade affirmed to ensure the supply of petroleum. Photo: Nguyen Thanh

In operating gasoline prices, does the Ministry of Industry and Trade consider April CPI?

We have calculations. It is important to look at the overall CPI of the year, not just for one month. The average of the year is the most important.

Economic experts also look at the synergistic impact that leads to much greater CPI if the previous price regulation increases. If gasoline increases, electricity increases then the price of listed commodities in the CPI basket. The Ministry has had many plans and calculated all these factors and reported to the Prime Minister for consideration but could not decide on its own.

We are the advisory agency together with the Price Management Department, General Statistics Office and the Electricity Regulatory Department (Ministry of Industry and Trade) to provide solutions, options and parameters for the Government to consider and decide. .

In the coming time, when the world oil and gas price increases, while the petrol price stabilization fund is quite "limited", even negative, please tell us how the Ministry of Industry and Trade has a plan to manage gasoline prices to avoid "shock" price increase?

In fact, in all operating plans, we calculate all factors including reporting to the Ministry leaders and Government leaders to review how to manage the Petroleum Price Stabilization Fund, how to set up funds.

For example, with E5 gasoline, for a long time we did not set it up, but still offset it to encourage E5 gasoline consumption, while using more reasonable E5 support measures to keep the Price Stabilization Fund. But recently there are many shortcomings. We are exchanging views with the Ministry of Industry and Trade, Price Management Department, reporting to leaders of the two ministries, reporting to the Government on how to manage the petrol price stabilization fund.

All options have been measured and from the executive perspective, the riskiest plan has been taken into account. After all, the Stabilization Fund (which is consumers' money) is sometimes positive, so businesses themselves must also share with the state management agency. Money is not business but consumers' money, and should assume a little sound understanding, then businesses can share with the State. Of course, the Ministry of Industry and Trade and the Ministry of Finance have taken into account the plan for the petrol price stabilization fund to be safer and higher than the current figure in the coming time.

In fact, gasoline scarcity the last time came from the "over expense" of the Price Stabilization Fund, and many petrol companies reported losses. In addition, there are still fears of gasoline scarcity. Can you share your views more clearly about this?

Enterprises always have to bear social responsibilities; especially big clue companies such as PVOil and Petrolimex, that are 2 State-owned enterprises holding dominant shares. State-owned enterprises are also tools of the State to implement macro policies, sometimes implementing political tasks to ensure social security, macro objectives of the Government and businesses. Maybe at this time enterprises make losses, but at other times they get interest and the whole year may be profitable.

Benefits of enterprises are for the whole year. Operating the state harmoniously benefits businesses, people and the State. The principle of transcending macroeconomic policy is to prioritize the interests of the crowd, sometimes prioritizing the interests of the country, the people and all policies towards consumers and the majority of people.

Thank you Sir!