Vintage pump: A private mobile petrol station in the Vietnamese hills. The shortage of the commodity in the country is because of red tape, with the Industry and Trade, and Finance ministries deflecting accountability to the other. — AFP
HANOI: The Industry and Trade (MoIT) and Finance (MoF) ministries continue to trade blame for the disrupted petrol supply in the domestic market.
The MoF said it gave the green light for two price adjustments since the beginning of October to raise petrol prices by 350 dong (RM0.067) per litre and transport costs by 290 dong (RM0.055) on Oct 7.
However, the MoF said it has not been able to meet the MoIT’s demand as the latter failed to send a cost report to justify further adjustments.
As soon as such information becomes available, the MoF, upon completion of their own due diligence, both on the books and on-site, will make the final decision.
Furthermore, the MoF said it stands by the decision to stop all petrol traders, who have not met their financial duties to the state and other requirements per regulations, from clearing customs for their cargo.
The General Department of Vietnam Customs has received instructions to work 24/7, national holidays included, to help traders once all said duties and requirements are met.
According to the MoF, of the four traders who were reportedly not allowed to clear customs, the Xuyen Viet Oil Travel and Transport Trading Co Ltd have accumulated more than 684 billion dong (RM130mil) in import duties.
A decision made earlier to stop this company’s operation is legal and in accordance with the country’s tax regulations, it said.
Another company, the NSH Petro Co Ltd, was found to have failed to install electronic monitor systems for their storage as requested by the general department after numerous reminders.
Finance minister Ho Duc Phoc said his ministry has been and will continue supporting all traders and retailers with the ultimate goal of ensuring an ample supply of petrol for the domestic market and industrial production.
Cargo from two other traders is going through quality inspection under the Ministry of Science and Technology.
“Quality inspection is under the directorate for Standard, Metrology and Quality jurisdiction,” said an MoF spokesperson.
The MoF said other than the above-mentioned four traders, all others, who meet their financial obligations and operational requirements, face no restrictions in import activities.
The MoF said the MoIT, which oversees petrol traders’ operations, must urge traders to quickly comply with current regulations and meet their financial requirements.
Commenting on traders’ grievances, economist Ngo Trí Long said prices have been raised to cover rising operational costs several times but a long-term solution must require traders to seek new suppliers and make an effort to reduce costs.
According to the MoIT, Vietnam’s petrol reserves stood at 1.255 million cubic metres on Sept 30. The country’s two largest refineries, Binh Son and Nghi Son’s, total output of 1.3 million cubic metres were enough to meet 80% of domestic market demand in October.
Some 34 traders were tasked with importing the remaining 20%, calculated at half a million cubic metres. — Viet Nam News/ANN
