In this operating period, because the prices of petroleum products tend to increase, especially diesel and kerosene have increased sharply, although the BOG Fund is at a relatively low level, the Inter-Ministry of Industry and Trade – Finance still decided to continue using flexibly the BOG Fund tool to limit the increase in prices of some petroleum products.
The world petroleum market between the past two operating periods continued to have strong fluctuations. Petroleum demand is expected to increase further as production and business activities in countries around the world continue to recover from the epidemic, especially after China began to relax blockade measures to prevent and control the epidemic. Covid-19 epidemic. Meanwhile, the supply to the market is hindered by the agreement in the European Union on continuing to increase sanctions to 90% of petroleum production from the Russian Federation; oil inventories in the US are still low; OPEC+ increased production but at a low level, not enough to offset the reduced supply from the Russian Federation. Prices of finished petroleum products over the past 10 days have increased sharply, especially diesel and kerosene products. The average price of finished petroleum products in the world between the gasoline price management period on June 1, 2022 and the operating period on June 13, 2022 is: 149,287 USD/barrel of RON92 gasoline used to make E5RON92 gasoline (an increase of $5,272 USD). /barrel, equivalent to an increase of 3.66% compared to the previous period); 154,745 USD/barrel of RON95 gasoline (up 2,798 USD/barrel, equivalent to 1.84% increase over the previous period; 162,946 USD/barrel of kerosene (up 18,261 USD/barrel, equivalent to 12.62% increase over the previous period) ; 166,591 USD/barrel of diesel oil (up 19,628 USD/barrel, equivalent to an increase of 13.36% over the previous period); 635,931 USD/ton of fuel oil 180CST 3.5S (down 20,367 USD/ton, equivalent to a decrease of 3.09 USD). % compared to the previous period).
The situation of Covid-19 epidemic in the country started to decrease. According to the Government’s new policy on safe and flexible adaptation to the Covid-19 epidemic, production and business activities of enterprises and people’s daily needs are recovering. In order to support production and business activities of enterprises and people’s daily life, limit the increase in petrol and oil prices, in the recent petrol and oil price management periods, the Inter-Ministry of Industry and Trade – Finance has continuously use the BOG Fund for gasoline and oil products with a spending rate of 100-1,500 VND/liter.
In this operating period, because the prices of petroleum products tend to increase, especially diesel and kerosene have increased sharply, although the BOG Fund is at a relatively low level, the Inter-Ministry of Industry and Trade – Finance still decided to continue using flexibly the BOG Fund tool to limit the increase in prices of some petroleum products. Accordingly, the Inter-Ministerial Department decided to continue not to set up the BOG Fund and continue to use the BOG Fund for gasoline products, to stop setting up the BOG Fund for diesel and kerosene, and to spend the BOG Fund for oil. diesel and kerosene so that the increase in domestic gasoline prices is lower than the increase in world gasoline prices. The management of petrol and oil prices mentioned above is to contribute to ensuring the implementation of the objectives of controlling inflation and stabilizing the market, supporting people and businesses in the process of recovering production and business activities; continue to maintain the price difference between E5RON92 biofuel and RON95 mineral gasoline at a reasonable level to encourage the use of biofuel to protect the environment according to the Government’s policy; ensuring the harmonization of interests among market participants, helping to maintain a stable supply of petroleum for the domestic market; taking into account the negative limitation of the BOG Fund to manage the price in the near future when the market still has many potential uncertainties; minimize negative impacts on socio-economic development, production and business activities and people’s lives.
To comply with regulations, guidelines, and operating instructions of the Government and competent authorities, the Ministry of Industry and Trade and the Ministry of Finance decide:
– Appropriation for setting up petrol and oil price stabilization fund: Continue not to make appropriation for BOG fund for gasoline products, not to make deduction for diesel and kerosene oil (previous period deduct 100 VND/liter), continue to set up the BOG Fund for fuel oil products at the rate of 300 VND/kg.
– Expenses for using the petrol and oil BOG Fund: Expenses from the BOG Fund for E5RON92 gasoline at 100 VND/liter, RON95 gasoline at 200 VND/liter, diesel oil at 400 VND/liter, kerosene at 300 VND/liter. liters, fuel oil is not spent.
After setting up and using the Petroleum Price Stabilization Fund in Section 1 above, the selling prices of popular consumer petroleum products on the market are as follows:
– E5RON92 gasoline: not higher than 31,117 VND/liter (an increase of 882 VND/liter compared to the current retail price), lower than RON95-III gasoline 1,259 VND/liter, if not spending BOG fund at 100 VND/liter, the price sales will be 31,217 VND/liter, an increase of 982 VND/liter;
– RON95-III gasoline: not higher than 32,375 VND/liter (an increase of 797 VND/liter compared to the current retail price), if the BOG fund is not spent at 200 VND/liter, the selling price will be 32,575 VND/liter, an increase 997 VND/liter;
– Diesel oil 0.05S: not higher than 29,020 VND/liter (an increase of 2,626 VND/liter compared to the current retail price), if making deduction of 100 VND/liter and not spending BOG fund at 400 VND/liter, the price sales will be 29,530 VND/liter, an increase of 3,136 VND/liter;
– Kerosene: not higher than 27,839 VND/liter (an increase of 2,493 VND/liter compared to the current retail price), if making deduction of 100 VND/liter and not spending BOG fund at 300 VND/liter, the selling price will was 28,249 VND/liter, an increase of 2,903 VND/liter;
– Fuel oil 180CST 3.5S: not higher than 20,357 VND/kg (down 544 VND/kg compared to current selling price).
Setting up and spending the Petroleum Price Stabilization Fund for petroleum products: applied from 15:00′ on June 13, 2022.
– Apply the selling price for petroleum products: regulated by the leading petrol and oil trader, but not earlier than 15:00 on June 13, 2022 for items with increased prices and no later than 3:00 p.m. June 13, 2022 for discounted items.
– From 3:00 p.m. on June 13, 2022, which is the time when the Ministry of Industry and Trade announces the base price of the period announced in this Official Letter until before the date the Ministry of Industry and Trade announces the base price of the next period, the adjustment adjusting the selling prices of petroleum products decided by the main petrol and oil traders in accordance with the provisions of the Government’s Decree No. 95/2021/ND-CP dated November 1, 2021, amending and supplementing a number of articles of Decree No. 83/2014/ND-CP dated September 3, 2014 on petroleum trading and Decree No. 83/2014/ND-CP, Circular No. 104/2021/TT-BTC dated May 18 November 2021 of the Ministry of Finance guiding the method of determining the constituent elements in the base price formula of petrol and oil, Circular No. 103/2021/TT-BTC dated November 18, 2021 of the Ministry of Finance guiding the method setting up, spending, using and managing the petrol and oil price stabilization fund.
The Ministry of Industry and Trade will coordinate with functional agencies to inspect and supervise the implementation of the responsibility of ensuring petroleum supply for the market by petrol and oil traders and will strictly handle violations. if).
Source: Website of the Ministry of Industry and Trade
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