Due to the fluctuations in the global energy market that could last until next year, the Ministry of Industry and Trade (MoIT) is making efforts to ensure the supply of petroleum products in the domestic market.
The MoIT is directing domestic oil refineries to increase production capacity and state-owned enterprises to increase imports until at least June 2023. The ministry continues to review and promptly update incurred costs (if any) into a formula for calculating the base price of fuel.
In addition, it will continue to inspect, supervise, and handle violations in compliance with the regulations – especially in terms of speculation and the hoarding of products. The ministry has also studied solutions to manage the difficulties in relation to petroleum business capital for specific cases.
On November 21, the MoIT met with the Vietnam Petroleum Association, 35 leading petroleum trading enterprises, and its affiliated agencies to plan preparations for the petroleum supply in 2023.
At the meeting, Minister of Industry and Trade Nguyen Hong Dien stated that the allocations of total petroleum resources in 2023 should be based on those in 2022 and equivalent to a coefficient of 1.3-1.4 per cent of GDP.
Accordingly, the ministry proposed two scenarios for allocating the minimum total petroleum resources in 2023. In the first, the allocation is forecasted to increase by about 10 per cent compared to 2022, equivalent to 25.9 million cubic metres. In the second scenario, the figure is estimated to grow by 15 per cent or 26.8 million cubic metres.
Petroleum will be allocated monthly or quarterly and adjusted regularly based on data from the management software. The MoIT also suggested that it is necessary to separate the relative output between imports and purchases from domestic refineries. Enterprises that do not have enough capacity will be allowed to combine the figures and import.
Since the beginning of the year, the MoIT has closely monitored the situation of supply, demand, and gasoline prices in the domestic market.
Responding to a shortage of petrol and oil at the end of the first quarter due to the reduction in the capacity of the Nghi Son refinery, on February 24, the MoIT announced an additional import of 2.4 million cubic metres in the second quarter of 2022.
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