Finding solutions so commodity prices no longer "anchor" when gasoline prices decrease

VCN - At the seminar "Petroleum prices decrease, prices of goods do not decrease - Current situation and solutions" held by the Government Portal on August 4, solutions have been discussed to make commodity prices no longer "anchored" high although the price of gasoline has been reduced.
Finding solutions so commodity prices no longer
The seminar "Petroleum prices decrease, prices of goods do not decrease - Current situation and solutions" was held by the Government Portal

Market prices lag

In the past, the price of petrol and oil decreased many times in a row. The current petrol and oil prices are equivalent to January 2022. However, up to the present time, the prices of many essential commodities in the country have remained at a high level. This includes pork, passenger freight, freight, and food, which negatively affect people's lives, especially during the period when the whole country is trying to recover the economy after the pandemic in the past 2 years.

Explaining this issue, Mrs. Dinh Thi Nuong, Deputy Director of the Price Management Department (Ministry of Finance) said that due to the impact of petrol prices on some commodities, it takes time to adjust the price. Production and business units, especially those whose products are directly affected by petrol and oil prices, must review the cost factors of price formation and determine the reduced selling price in line with the recent drop in petrol prices.

Agreeing with the leaders of the Price Management Department about the cycle and lag of prices in the market, economist Can Van Luc said that there were also a number of other reasons. Assuming enterprises immediately reduce the price of other related products, they are afraid that it will be extremely difficult to increase it later.

"I think it's cautious but not convincing enough because it's clear that "the water goes up, the boat goes up, the water goes down, the boat goes down". I agree there is a delay, but it can't be months or months, but obviously after only a few weeks, we have to adjust it immediately," economist Can Van Luc said.

Furthermore, according to the expert, the authorities need to monitor the situation more closely. Equally important is that people have the right to reflect if they see a decrease in the price of gasoline, but the price of transportation, the price of some goods for sale and travel remain the same. At that time, they have the right to report to the competent authorities. Mr. Can Van Luc also hopes the authorities must have measures to handle it, otherwise, people will feel dissatisfied.

Solving the problem of supply and demand of goods

In the face of the recent decrease in gasoline prices, while the price of many commodities remains high, Mrs. Dinh Thi Nuong said that the Ministry of Finance advises some measures to strengthen price management and submitted to the Government to issue public electricity on directing ministries, sectors and localities, to strictly control service prices when gasoline prices fell recently.

The Ministry of Finance has also been submitting to the Government a plan to adjust value added tax, excise tax on gasoline and import tax on gasoline for the unleaded motor to reduce import costs of gasoline and diversify import sources.

The ministry also strengthened the review and declared prices of items directly affected by petrol and oil prices.

Mrs. Dinh Thi Nuong also said that essential goods and services are indirectly affected by gasoline and have an impact on the CPI, as well as on people's lives and business activities. The Ministry of Finance will continue to monitor market price movements and will grasp the production performance of business organizations to take appropriate measures to control prices and stabilize prices.

Prime Minister Pham Minh Chinh just signed and promulgated Official Dispatch No. 679/CD-TTg dated July 31, 2022 on strengthening measures for price management and administration. After that, the Ministry of Finance implemented a number of key tasks.

Commenting on this issue, economic expert Vu Vinh Phu praised the content of Official Letter 679 of the Prime Minister. So far, gasoline prices have fallen sharply, but the market price level has stood still or only decreased slightly. Mr. Vu Vinh Phu said that, first of all, it is necessary to solve the problem of goods supply and demand and avoided to break the supply chain, especially to reduce the intermediary stages.

In addition, it must use the power of the political system, mobilizing retail associations, markets, and neighborhoods and encourage traders to voluntarily reduce prices following the reduction of petrol prices, sharing common difficulties with society.

“The implementation is important. If launching synchronous solutions, the Government's directives will be implemented effectively, come to life, and ensure the goal of stabilizing the macro-economy and controlling inflation by about 4%," Vu Vinh Phu said.

By Thùy Linh/Thanh Thuy

Related News

The exchange rate is heated up: Need flexible regulation to control inflation

The exchange rate is heated up: Need flexible regulation to control inflation

The exchange rate has been increasing sharply since the beginning of the year until now, despite the context that foreign currency liquidity is still abundant thanks to positive indicators of trade and investment. However, the impact on the entire market and inflation control is not great.
Control false information about prices causing market instability

Control false information about prices causing market instability

VCN - According to the Ministry of Finance, the increase in wages contributes to the development of the economy, so the impact on the consumer price index (CPI) has been included in the price management scenario of the Price Management Steering Committee.
Control inflation expectations through transparent price management: Deputy Prime Minister Le Minh Khai

Control inflation expectations through transparent price management: Deputy Prime Minister Le Minh Khai

VCN - Deputy Prime Minister Le Minh Khai, Head of Steering Committee for Price Management, requested units to closely monitor the movements of prices and inflation in the world, thereby promptly warning about risks causing domestic inflation.
Reduce operating interest rates to promptly support businesses

Reduce operating interest rates to promptly support businesses

VCN - For the first time in two years, the State Bank of Vietnam (SBV) has decided to cut some operating interest rates from 0.5-1%. According to experts, this is a very flexible and timely decision.

Latest News

Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).
Support clearance procedures for imported gold for bidding

Support clearance procedures for imported gold for bidding

VCN - The State Bank (SBV) has sent a document to competent ministries and branches requesting coordination in implementing the Prime Minister's direction in gold market management.
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

VCN - According to forecasts, Vietnam's financial sector in 2024 will be more positive, with the exchange rate gradually cooling down from the end of the second quarter of 2024, while interest rates will remain low to promote growth.
Majority of credit institutions forecast profit growth in 2024

Majority of credit institutions forecast profit growth in 2024

A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).

More News

Central bank plans to auction gold bars on April 22

Central bank plans to auction gold bars on April 22

The State Bank of Vietnam (SBV) will auction SJC-branded gold bars on April 22, a representative of the central bank said on April 19.
Old loans must endure higher interest rates temporarily: central bank

Old loans must endure higher interest rates temporarily: central bank

The average lending interest rate for new loans by commercial banks is reported at around 6.4% per year, a decrease of 0.7 percentage point per year compared to the end of last year. However, borrowers with loans issued before the latest rate adjustment still must pay higher rates, according to the State Bank of Vietnam (SBV).
State-owned enterprises flourished

State-owned enterprises flourished

VCN - The production and business situation in the first quarter of 2024 of the state-owned enterprise sector continues to have many bright spots with many financial targets completed or exceeding the set plan. This is the premise for positive business results in the second quarter and the whole year 2024.
Forum discusses support for women-owned firms ​to join supply chains

Forum discusses support for women-owned firms ​to join supply chains

A forum on supporting women-owned businesses to join supply chains through sustainable development tools took place in Hanoi on April 17.
Ensure savings and prevent losses in disbursement of public investment

Ensure savings and prevent losses in disbursement of public investment

VCN - The practice of thrift and combating waste in the management and use of public investment is one of key tasks in the program of thrift practice and waste combat in 2024 of the Ministry of Finance.
Implementing unprecedented fiscal policies to actively support people and businesses

Implementing unprecedented fiscal policies to actively support people and businesses

VCN - Implementing fiscal policies to support the economy, the Ministry of Finance has advised and offered many unprecedented solutions to reduce taxes, fees and charges, thereby supporting people and businesses to overcome difficulties, restore production and business. According to assessments, in 2024 fiscal policy will continue to be a positive highlight for the economy.
Foreign investors net sell in Vietnamese market, banking sector attracts interest

Foreign investors net sell in Vietnamese market, banking sector attracts interest

According to BSC, foreign investors sold a net total of VNĐ11.55 trillion across all three exchanges in the first three months of 2024, equivalent to 50.62 per cent of the total net selling value in 2023. The selling pressure came from active funds and ETFs, resulting in a continued net withdrawal state and exerting pressure on the market.
Banks record positive business indicators in Q1 2024

Banks record positive business indicators in Q1 2024

According to experts, the prosperity of the banking industry in the period came from many supporting factors, including favourable policies to credit growth.
The finance sector focuses on perfecting institutions, ensuring financial discipline, and budgetary rigor

The finance sector focuses on perfecting institutions, ensuring financial discipline, and budgetary rigor

VCN- In the document sent to the Ministry of Planning and Investment (MPI) regarding the implementation of Resolution No. 01/NQ-CP in the field of state finance and budget in March 2024, the Ministry of Finance stated that it actively implemented projects to build and improve institutions, ensuring the balance of the state budget and stability in the financial market and prices.
Read More

Your care

Latest Most read
Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).
Support clearance procedures for imported gold for bidding

Support clearance procedures for imported gold for bidding

The State Bank (SBV) has sent a document to competent ministries and branches requesting coordination in implementing the Prime Minister's direction in gold market management.
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

VCN - According to Vu Nhu Thang, Deputy Chairman in charge of NFSC, the economy in 2024 has more prospects than 2023 thanks to the strong promotion of public investment and specific policies to promote production activities, consumer economy, and investme
Majority of credit institutions forecast profit growth in 2024

Majority of credit institutions forecast profit growth in 2024

A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).
Central bank plans to auction gold bars on April 22

Central bank plans to auction gold bars on April 22

The State Bank of Vietnam (SBV) will auction SJC-branded gold bars on April 22, a representative of the central bank said on April 19.
Mobile Version