In recent days, many petrol filling stations in the Mekong Delta region have closed and stopped selling, partly because of losses, and partly because of supply shortages, leading to the prospect of large-scale disruptions in the region.

Prime Minister Pham Minh Chinh told the Ministry of Industry and Trade to make stronger efforts to stabilize the fuel market and ensure the operation of fuel retailers and gas stations.

The past nine months of the year saw Vietnam import over 6.5 million tonnes of petroleum worth US$6.833 billion, up 22.7% in volume and 131.8% in value year on year, according to the General Department of Vietnam Customs.

With new incentives, the revised Petroleum Law would allow projects to start soon, increase reserves by an additional 70-80 million oil barrels, and bring revenue of $1-1.5 billion.

Petroleum retailers want a minimum discount of VND700 per liter of gasoline sold to break even, VND1,000 per liter to cover expenses, and over VND1,000 per liter to make a profit.

Inspectors appointed by the Ministry of Industry and Trade (MoIT) have recently withdrawn the business licences of five fuel firms.

Retail petroleum businesses have asked to stop contributing to the petrol price stabilisation fund, increasing the commission to reduce losses and permanently withdrawing the licence of unprofitable retailers.

Due to the recent fuel supply disruptions, the Ministry of Industry and Trade has decided to establish three inspection teams to look into the operations of fuel trading businesses.

Vietnam had spent nearly US$6 billion importing 5.65 million tonnes of petroleum of all kinds as of August 15, up 150% in value year on year, according to the General Department of Vietnam Customs.

The Ministry of Industry and Trade suspended the operating licenses of seven key petroleum import and export businesses after inspecting 33 wholesalers in February this year.

The Ministry of Industry and Trade has said it is planning to boost national fuel reserves to 30 days of domestic consumption amid global oil market volatility.

Domestic fuel supply in the second quarter of 2022 is set to amount to some 6.7 million cubic meters, fully meeting the demand for consumption estimated at nearly 5.2 million cubic meters of fuels, according to the Ministry of Industry and Trade.

Some parts of an agreement signed with a foreign investor have pushed Vietnam into a dilemma.

Enterprises in charge of importing petrol and oil will be strictly punished, and could even be suspended from operating, if found to be illegally holding petrol and oil to sell at a higher price later.

Eight experts have thrown their weight behind the Ministry of Industry and Trade’s proposal to allow domestic petrol and oil traders to transfer their stakes of no more than 35% to foreign investors.

The Ministry of Industry and Trade has sent the Government a draft decree amending and supplementing certain articles of Decree 83/2014 on petrol and oil trading, proposing allowing foreign investors to enter the country’s fuel retail market.