Many say the current system is unfair
While there is no law regulating the formation of this fund, the Pricing Ordinance and the government’s decree on financial measures mention that the fund will be used to stabilise the market if sudden price fluctuations occur.
At a press conference on July 18, the State Audit of Vietnam (SAV) reported on the current use of the petrol price stabilisation fund, and said that asking enterprises to continue contributing the same amount of money to the fund is unreasonable.
Le Minh Khai, Deputy General Auditor of the SAV, emphasised that petrol enterprises have different revenues due to different distribution systems. Timing of imports can also play a large part, with the changing global market affecting domestic prices.
In the past times, many companies have complained that they have to contribute to the fund while incurring losses, causing more difficulties.
"I think we should have a more competent and suitable mechanism to manage the stabilisation fund." Khai said.
Last week, the Ministry of Finance said that the fund should come under the national treasury since the public expressed concerns that the money they spent on fuel that contributed to the fund remained in the hands of petrol companies. The fund should be managed by the State Treasury so that enterprises do not misuse the money.
On the contrary, Nguyen Duc Kien, deputy head of the National Assembly's Economic Committee said, "The move will gain the public's trust, but it may not be as effective as the current system. Most firms obey the regulations about collecting and using the fund."
Khai approved of the Ministry of Finance's decision but said it's only a temporary measure. He further said that the government could use the money to offer as loans to financially sound enterprises, because it is a waste to leave such a huge amount sitting idle.