Economy

Ministry of Industry and Trade requests review of gasoline business licenses

TH (according to Tin Tuc newspaper) January 22, 2024 15:15

The Ministry of Industry and Trade has just issued a document requesting key traders and petroleum distributors to inspect and review the current status and conditions for granting business licenses for petroleum export and import...

Chú thích ảnh
Buying and selling gasoline and oil at a gasoline and oil retail point in Hanoi

According to the Ministry of Industry and Trade, implementing the conclusion of the Government Inspectorate, key traders will have to report in detail on the conditions for having specialized wharves (ownership, lease, ability to receive oil tankers); oil receiving warehouses (quantity; ownership; leased from which enterprise, where; lease period); means of transporting oil (quantity, ownership, lease, type of vehicle, lease period).

Key traders must also report specifically on the petroleum distribution system; including listing owned stores, rented stores (from 5 years or more), petroleum retail agents, petroleum retail franchisees, and petroleum general agents.

In addition, the distributor must report the trader's petroleum distribution system with information on owned stores, rented stores, stores affiliated with the petroleum retail agent, stores affiliated with the trader receiving the petroleum retail franchise, etc.

The recently announced conclusion of the Government Inspectorate clearly stated: From January 1, 2017 to June 30, 2022, the Ministry of Industry and Trade issued 37 licenses for petroleum export and import (not including 4 licenses issued to petroleum wholesalers supplying aviation activities) and issued 347 certificates of eligibility to act as distributors.

The Government Inspectorate pointed out that the permission to rent warehouses and oil tanks as a condition for granting licenses and certificates has not encouraged key traders to invest in developing oil storage warehouses, leading to difficulties in meeting the requirements for commercial oil storage warehouses. From 2017 to September 2022, the results of implementing investment in building commercial oil storage warehouses according to the plan only reached 15%.

Wholesale traders and distributors mainly rent warehouses and fuel tanks to qualify for licenses and certificates. Many wholesale traders and distributors sign contracts to rent warehouses and fuel tanks seasonally and according to actual usage to reduce costs.

"This is one of the reasons leading to violations in the licensing stage and implementation of licensing conditions by the Ministry of Industry and Trade, key traders and distributors," the Government Inspectorate concluded.

TH (according to Tin Tuc newspaper)
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Ministry of Industry and Trade requests review of gasoline business licenses