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Fuel hike intervals extended to 15 days

Update: September, 06/2014 - 09:07
The new decree on the petrol business, which contains the regulation and regulates fuel prices in line with State-managed market mechanisms, replaces Decree 84/2009/ND-CP and takes effect on November 11.— Photo baomoi

HA NOI (VNS)— The Government has increased the interval between two consecutive fuel price increases from at least 10 to at least 15 days.

The new decree on the petrol business, which contains the regulation and regulates fuel prices in line with State-managed market mechanisms, replaces Decree 84/2009/ND-CP and takes effect on November 11.

The decree also states that fuel traders will be allowed to unilaterally raise fuel prices if the rate of increase is below three per cent of current retail prices, but they must report the increase to the Ministries of Finance and Industry and Trade. The rate allowed for a unilateral increase in Decree 84 is 7 per cent.

If the increase in rates is between 3 and 7 per cent, petrol wholesalers must submit documents on the price fluctuations of elements which make up petrol prices, as well as the anticipated increases, to the two ministries for review and approval.

The rate increase that requires the ministries' review and approval in Decree 84 is 7 to 12 per cent.

The two ministries must reply about the increases and use of the fuel price stabilisation fund, if necessary, to petrol wholesalers within three working days from receipt of the required documents. If they fail to do so within three working days, the wholesalers may raise fuel prices but not exceeding seven per cent.

Fuel price increases exceeding 7 per cent, or increases with significant impact on the country's socio-economic development and the people's standard of living, must be reported to the Prime Minister for review and approval. The rate increase that requires the Prime Minister's review and approval in Decree 84 is 12 per cent.

The new decree also sets no limits on the number and rate of fuel price cuts, as well as intervals between consecutive price cuts.

Transparency

The decree states that the Ministry of Industry and Trade is reponsible for providing updates on world fuel prices, including base and retail prices, and the use of the fuel price stabilisation fund on its website.

The decree also says the Ministry of Finance will supervise petrol and oil pricing, as well as the extraction and use of the fuel price stabilisation fund of wholesalers.

Petrol wholesalers must publicise on their websites or on mass media the current petrol retail prices, extraction and use of the fuel price stabilisation fund and audited financial reports. — VNS


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