• Tue. Apr 23rd, 2024

Breaking News: Ministry Proposes New Decree to Regulate Gasoline Prices with Market-Driven Mechanisms

BySamantha Nguyen

Apr 3, 2024
Petroleum businesses may charge a maximum rate of 20%, as suggested.

The Ministry of Industry and Trade has proposed a new decree that aims to regulate gasoline prices by allowing businesses to calculate their own retail prices based on the 7-day average world price announced by the State. This draft replaces previous decrees on petroleum business and was consulted by the Ministry from April 1, following the first draft.

Currently, under regulations, the State sets a base price for retail gasoline prices, which serves as a ceiling for businesses to determine their own retail prices within the system. However, this process requires businesses to wait for the base price announcement from the State management agency before setting their prices, leading to a lack of market-driven pricing.

The Ministry of Industry and Trade believes that this current mechanism for managing gasoline prices does not align with market principles. As a result, they are proposing that the State not regulate gasoline prices but instead announce the average world price and certain fixed costs. Businesses can then calculate their maximum selling price based on these factors and their own expenses and profit norms, with the retail price to consumers not exceeding this maximum level.

The draft offers two options for businesses to calculate their costs and profit norms. Option 1 involves adding a fixed amount to the retail price, while Option 2 adjusts the percentage based on fluctuations in world gasoline prices. The Ministry believes that allowing businesses to set their own prices will promote a competitive environment for gasoline pricing and help traders and regulators avoid periodic calculation and publication of costs.

Furthermore, the draft includes regulations related to the Price Stabilization Fund and warehouse use aimed at maintaining stability in these areas while ensuring efficient distribution practices. The Ministry will monitor changes in costs and profits of enterprises and report any significant increases to

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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