The Hanoitimes - The Ministry of Finance has assigned its Price Management Department to closely monitor changes in world oil prices for timely adjustment of the local retail prices, said a state official.
“The ministry’s viewpoint in price management is to ensure the harmonization of interests between the state, consumers and petroleum businesses.”
“It is a favorable time for a reduction in the retail prices as the prices of imported petroleum products have fallen sharply.”
“However, actual oil import duties have recently been recovered since May 9, from 0 percent to 2 percent, still a low level.”
“Therefore, the Ministry of Finance will consider very carefully for early decision, including price cut plan and import tax restoration.”
Representative of a petroleum importer said they are awaiting the decision of the Ministry of Finance on the price adjustment of petroleum products.
He told Tuoi Tre that the firm was enjoying a profit of about VND1,000 per liter of fuel as the prices of imported petroleum products have decreased strongly, about 5-7 percent, over the past 15-day period.
Earlier, the general director of SaigonPetro said its profit rate was about VND700 per liter of petroleum products sold. For smaller businesses which are not importers or import small volumes, their profit rates were at VND1300-1500 per liter on average for the last 10 days.
When world prices decrease, wholesalers have increased the discount rate for their dealers from VND600 to 800 VND per liter, some even raised the rate higher.
Under the provisions of Decree 84 on petrol and oil trading, businesses have to register for any price adjustment plans to the Ministry of Finance.
However, they are currently waiting for the Ministry of Finance’s decision for the coming price cut, while always actively suggesting for the price hike, bemoaning on losses.
Tens of billions of dong profits daily
Petroleum wholesalers have enjoyed a profit rates amounting to some tens of billions of dong per day as imported petroleum prices continue to fall, while the domestic retail prices remain unchanged.
On Thursday, the A92 gasoline price in Singapore was only $ 117.01 a barrel. It was $ 117.33 a barrel in the previous day.
As a result, per every liter of A92 gasoline sold, local firms have recently enjoyed a VND100 more in tiered profits every day.
Specifically, with the current average base price for the last 30 days starting May 16, the profit rate is VND800 per liter. The rate inched up VND100 per liter to VND900 per liter after the Thursday session.
Major businesses are also enjoying big profits in trading other petroleum products including diesel and kerosene.
Preliminary calculations show that with the sales of over 24 million liters a day at those wholesalers, their recent daily profit rates have surged to VND18-19 billion.
As for smaller enterprises with daily sales of about 7-8 million liters, their profit rates have been at VND5-6 billion per day.