Petrol retail enterprises have struggled to keep their operations profitable as disruptions in the supply chain continue to persist.

Filling stations must sell gasoline at ceiling prices set by the Ministry of Industry and Trade (MOIT), though they are incurring big losses.

The Vietnam Chamber of Commerce and Industry (VCCI) has written to the Government suggesting fuel retail prices be decided by businesses based on supply and demand to prevent fuel shortages.

According to MoIT, shorter price cycles are better at keeping domestic prices closer to the global oil prices, even during holidays (except Tet) to minimise the risk of market disruptions.

While fuel prices increase, and the USD/VND exchange rate climbs, many fuel enterprises face difficulties in accessing foreign currency and credit sources.

It is common to see makeshift petrol stalls on Hanoi pavements as petrol stations have temporarily shut or restricted sales, citing tight supplies and loss-making operations.

Under the Minister of Industry and Trade’s Directive, harsher penalties will be imposed on traders or businesses found engaging in price gouging, resorting to hoarding, and smuggling fuel.

The Ministry of Industry and Trade has ordered the market surveillance force to inspect those gas stations that have suspended operations and strictly deal with violations, if any, reported the local media.

The Government proposed the operation of the petrol price stabilisation fund should be maintained because it remained an effective tool to regulate petrol prices.

From 10 a.m. on October 31, the scene of people waiting in line to buy gasoline happened again in the inner city and the suburbs of Ho Chi Minh City. Some gas stations said they ran out of fuel or sold gasoline at a limit.

The Government Inspectorate has decided to launch inspections of 15 major fuel trading companies and two oil refineries following the recent fuel retail market chaos in multiple southern provinces, the local media reported.

After the adjustment of gasoline prices, long lines of motorbikes were still seen at many petrol stations in Ho Chi Minh City to fill their vehicles up.

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.

The number of gas stations that have so far suspended operations due to a supply shortfall has risen to 121 from 54 on the previous day, said a report which the HCMC market surveillance agency released on October 10.

Many people had to queue for long hours on Sunday evening in HCM City as local petrol stations announced they would run out of fuel.

HCMC had seen 54 gas stations suspending operations by Sunday night, October 9, due to fuel supply shortfalls, according to a report by the HCMC market surveillance agency.

Some 24 gas stations in HCMC have reported fuel shortages and temporarily stopped selling gasoline on October 7, according to the HCMC Department of Market Management.

The Government needs to carefully evaluate the effectiveness of the petrol and oil price stabilisation fund in keeping the commodity’s retail prices stable before deciding to maintain or eliminate the tool, experts said.

Amid the continuously fluctuating prices for oil and gasoline, Vietnam is injecting millions of US dollars into the import of these commodities while inadequacies in the domestic market have not yet been resolved.