Ministry of Industry and Trade proposes 3 solutions to stabilize the market and gasoline prices

Deputy Minister Do Thang Hai talks about solutions to stabilize the petroleum market. Photo: Xuan Quang/Vietnam+

According to Mr. Hai, recently, the price of gasoline has been increasing continuously and at a high level. In that context, the Government leaders are very concerned and regularly give strong instructions on ensuring the supply of gasoline to serve the daily life of people and the production and business activities of enterprises and reasonably manage the price of gasoline.

Mr. Hai affirmed that the Ministry of Industry and Trade has closely coordinated with the Ministry of Finance to consistently and properly implement the regulations under Decree No. 83/2014/ND-CP dated September 3, 2014 and Decree No. 95/2021/NQ-CP dated November 1, 2021 of the Government in managing domestic gasoline prices in accordance with the developments in world gasoline prices but still bringing the most favorable conditions possible for people and businesses.

According to Deputy Minister Do Thang Hai, there are 3 measures that have been implemented in the past and need to continue to be focused on in the coming time to be able to maximally control the increase in gasoline prices.

Specifically, using the Price Stabilization Fund effectively and flexibly to limit strong fluctuations in domestic gasoline prices compared to world price fluctuations, contributing to the goal of controlling inflation and supporting economic recovery.

“It is necessary to recognize that the increase in gasoline prices not only causes difficulties for people and businesses but also puts enormous pressure on the Government's macroeconomic management, especially on the consumer price index (CPI),” said Mr. Hai.

He further cited that from the beginning of the year to the most recent management period on June 1, 2022, the average transaction price of some world petroleum products in the Singapore market (Platt price - announced by Platt's News Agency and being used as a benchmark to calculate the base price of domestic petroleum products) has increased by 45.86% - 63.68%. However, thanks to the flexible and reasonable use of the Price Stabilization Fund over the past time, the price of domestic petroleum products has only increased by 27.29% - 47.89%.

“Thus, we still have to operate according to the increasing trend of world prices, but our increase is lower,” Deputy Minister Do Thang Hai emphasized.

In addition, the authorities also adjusted taxes and fees in the gasoline price structure, for example, environmental protection tax, special consumption tax, and import tax.

Specifically, on March 23, 2022, the Standing Committee of the National Assembly issued Resolution No. 18/2022/UBTVQH15 on reducing environmental protection tax rates on gasoline, oil, and grease, including a 50% reduction in environmental protection tax rates on gasoline, diesel oil, fuel oil, lubricants, and grease and a 70% reduction in environmental protection tax rates on kerosene from April 1, 2022 to December 31, 2022.

He affirmed that in the coming time, the Ministry of Industry and Trade will continue to coordinate with ministries and branches, especially the Ministry of Finance, to continue reviewing and proposing possible solutions to reduce taxes related to the structure of gasoline prices.

The representative of the Ministry of Industry and Trade emphasized that adjusting and reducing gasoline prices is the responsibility not only of the Ministry of Industry and Trade and the Ministry of Finance, but also of the Government and other ministries and branches. Therefore, it is necessary to look to other solutions such as proposing social security policies to support people, especially poor households, policy households... and support solutions for the business community when production and business activities are being greatly affected by fluctuations in gasoline prices...

“With the measures currently being implemented as well as in the coming time, we will try our best to adjust gasoline prices within the permitted conditions and in the context that current gasoline prices are still lower than those of countries sharing borders with Vietnam such as Laos, Cambodia, China, etc.,” Mr. Hai affirmed.

According to Vietnam+