Petroleum businesses 'cry out' because of sharp discount reduction: What does the Ministry of Industry and Trade say?

(Chinhphu.vn) - According to the representative of the Ministry of Industry and Trade, the high or low discount level depends on the business relationship of the enterprise and the business contract between enterprises.

According to the representative of the Ministry of Industry and Trade , the high or low discount level depends on the business relationship of the enterprise and the business contract between enterprises - Illustrative photo

Faced with the situation of petroleum wholesale enterprises sharply reducing discounts, causing retail enterprises to "cry out", a representative of the Department of Domestic Market Management and Development (Ministry of Industry and Trade) informed about the issue of discounts in petroleum business.

Accordingly, the discount rate in the petroleum business is the discount rate of the petroleum selling enterprise to the petroleum buying enterprise compared to the retail price of petroleum. The discount rate is flexibly adjusted by petroleum selling enterprises (reflecting the market), depending on the fluctuations of supply and demand, prices in the world and domestic markets.

The representative of the Department of Domestic Market Management and Development emphasized that the current legal regulations on petroleum trading in Vietnam do not stipulate the discount rate. The State only creates the environment, manages, operates and regulates the ceiling price of retail petroleum products (to protect the interests of consumers and manage the macro economy ), does not regulate the discount rate in petroleum trading of enterprises. The high or low discount depends on the business relationship of the enterprise and the business contract between enterprises.

Decree 80/2023/ND-CP of the Government amending a number of articles of Decree 95/2021/ND-CP and Decree 83/2014/ND-CP on petroleum trading allows petroleum retail agents to sign contracts to act as agents for 3 main traders or petroleum distributors, opening up more options for petroleum retail agents to supply goods. Petroleum retail agents will choose traders to supply goods to them with reasonable discounts.

In addition, current regulations on petroleum trading are gradually following the market mechanism and moving towards applying petroleum prices completely according to the market mechanism in the spirit of Resolution No. 55/2020 of the Politburo on the orientation of Vietnam's National Energy Development Strategy to 2030, with a vision to 2045 and the direction of the Government Standing Committee in Document No. 175/2025.

Also according to the representative of the Department of Domestic Market Management and Development, in the past 2 weeks, the world oil market has fluctuated due to the conflict in the Middle East, causing the world oil price to increase, the risk of supply disruption, some key traders have reduced the oil discount for agents to 500 VND, or 100-200 VND. However, by June 25, due to positive signals from negotiations in the Middle East, oil prices have decreased, the risk of supply shortage has also decreased, so the discount of key enterprises has also increased again.

The gasoline discounts of some key enterprises on June 30 are as follows: Phuc Lam Company: 2,600 VND; Military Petroleum Corporation: 1,800-2,300 VND (depending on the region); Vietnam Oil Corporation: 2,300-2,400 VND; Saigon Petro: gasoline 1,600 VND, oil 1,400 VND; Petrolimex: 1,700 - 1,900 VND (depending on the product).

The representative of the Department of Domestic Market Management and Development emphasized that when participating in business in the market, petrol dealers and retail stores need to accept the rules of the market and be subject to market regulation (supply, demand, price), so they need to have their own business plan to respond when the market fluctuates.

For example, when world oil prices are low and supply is abundant, key and distribution enterprises can offer high discounts to retailers; however, when world oil prices increase or are forecast to increase and supply becomes scarcer, retailers may have to accept low discounts, or even negative discounts, but still have to import goods to maintain business operations, in return for enjoying high discounts.

Anh Tho

Source: https://baochinhphu.vn/doanh-nghiep-xang-dau-keu-troi-vi-chiet-khau-giam-manh-bo-cong-thuong-noi-gi-102250701180028421.htm