FacebookInstagramTwitterContact

 

2023 BIMP-EAGA SPM Dirasmikan           >>           Penandatanganan MoU Penaiktarafan BGEC           >>           Pelancaran Pusat Kecemerlangan Sejarah, Kesultanan Brunei Psb           >>           'I Had To Breastfeed My Husband On Holiday – It Was The Weirdest Thing We've Done'           >>           Librarians Left In Stitches As Overdue Book Finally Returned After 43 Years           >>           Khloe Kardashian Sets The Record Straight On Her Current Relationship Status           >>           Eminem's Daughter Hailie Jade Is Engaged To Evan Mcclintock           >>           See Chris Brown's Shocking Reaction To Losing 2023 Grammy For Best R&B Album           >>           Nissan Warns Costs Must Fall To Make New Electric Cars In UK           >>           Tech Lay-Offs: Dell To Cut Workforce           >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

[email protected]

 

ADVERTISING

[email protected]

 

PRESS RELEASE

[email protected]

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events





Prayer Times


The prayer times for Brunei-Muara and Temburong districts. For Tutong add 1 minute and for Belait add 3 minutes.


Imsak

: 05:07 AM

Subuh

: 05:17 AM

Syuruk

: 06:36 AM

Doha

: 06:59 AM

Zohor

: 12:35 PM

Asar

: 03:56 PM

Maghrib

: 06:32 PM

Isyak

: 07:44 PM

 



The Business Directory


 

 



Vietnam


  Home > Vietnam


Fuel Price Cycle To Be Shortened, Removed In The Long Run


Fuel tankers at a depot in the outskirts of Hà Nội. VNA/VNS Photo

 


 November 17th, 2022  |  12:46 PM  |   231 views

HÀ NỘI

 

The Ministry of Industry and Trade (MoIT) has proposed a new price mechanism to adjust fuel prices every 5 days instead of the current 10-day cycle, or possibly every day to finally address a number of issues that resulted in sporadic fuel shortage across the country in recent months.

 

The Ministry of Industry and Trade (MoIT) has proposed a new price mechanism to adjust fuel prices every 5 days instead of the current 10-day cycle, or possibly every day to finally address a number of issues that resulted in sporadic fuel shortages across the country in recent months.

 

Some industry experts and traders have long supported a shorter price cycle, saying it will solve the discrepancy between fuel prices in the domestic and international markets and be more in sync with fuel trading activities.

 

Nguyễn Tiến Thỏa, formerly of the Valuation Vietnam Association, said the 10-day price cycle has shown a number of shortcomings and limitations in balancing the interests of fuel traders, retailers and consumers.

 

Shorter price cycles, 3-5 days at most, were only the first step in bringing domestic fuel prices to the same level as the international market, eliminating a delay that encourages some traders to hold onto their stocks to wait for higher prices.

 

Economist Vũ Vinh Phú said the delay, at times, created a situation in which traders purchased fuel at higher prices but were forced to sell at a lower price point. In addition, retailers were also discouraged as their bonuses were slashed if prices stayed low.

 

It's simply not possible for traders to sustain the current 10-day cycle as prices continued to fluctuate almost daily in the international market.

 

"We must start making the transition to a full market-driven mechanism, one in which prices can be adjusted every 5 days or even every day. It's in the best interest of all stakeholders including traders, retailers and consumers," he said.

 

A 10-day price cycle will just discourage traders from stocking fuel out of fear of financial losses, according to Phú.

 

Meanwhile, some voiced their concerns over letting go of all measures to manage fuel prices, saying the domestic market was not yet saturated enough with just a few large traders and therefore, not suitable for a fully market-driven approach.

 

Lê Quốc Phương, former deputy director of the Vietnam Industry and Trade Information Centre under the MoIT, said it's prudent to gradually reduce the duration of each price cycle, first bringing it down from 10-day to 5-day.

 

"It will give us the best of both worlds, allowing ministries to intervene in extraordinary situations while making it easier for traders and retailers to operate," he said.

 

It's important to note that fuel prices play a large role in the government's effort to rein in inflation, manage CPI and other macroeconomic factors.

 

Ngô Trí Long, former head of the Institute for the Study of Market and Price under the Ministry of Finance, said while it's clear that the current price cycle's duration must be shortened as much and as early as possible the Government must also realistically evaluate its ability to intervene when intervention is needed.

 

From a macroeconomic standpoint, a laissez-faire approach to fuel prices, while may benefit traders, retailers and, to some extent, consumers, will make it that much more difficult for the Government to control inflation and import/export activities.

 

They called for scientific studies to be conducted before running a pilot programme, small in scale, to gather additional data before nationwide implementation. Another top priority should include the expansion of the country's fuel storage to be able to cover at least 3-6 months of need, creating a larger safe margin on the supply side. VNS

 


 

Source:
courtesy of VIET NAM NEWS

by Viet Nam News

 

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]

 

Related News


Deputy Minister: Moh In Final Phase Of Preparing Health White Paper

 2023-02-07 09:43:27

Second Balloon Over Latin America Is Ours – China

 2023-02-07 11:27:53

Nissan Warns Costs Must Fall To Make New Electric Cars In UK

 2023-02-07 12:10:04