Petrol prices are too low to destabilize Vietnam market?

(PLO) – The price is very low in recent years makes the domestic gasoline market turmoil? 

Quang Ngai province has sent dispatches to the Government on proposals to remove difficulties related to the business operations of the Dung Quat oil refinery project (JSC Binh Son Refinery – BSR).

Notably, in dispatch, Quang Ngai province has given the difficulty of the Dung Quat oil refinery project than oil refinery project in Nghi Son (Thanh Hoa).

Accordingly, the department said the Dung Quat oil refinery is difficult because most affected from changes in world crude oil prices and the supply of products to the market soared.

“Nghi Son oil refinery supplying products to the domestic market from January 5-2018 far right time low market demand, while supply from imports and source of the abundant BSR .

This makes the market oversupply, leading to the consumption and price of petroleum products BSR greatly affected and the direction of disadvantage “- Quang Ngai province stating fact.

Quang Ngai province also assess the market will continue to excess amounts of fuel because of the large volume of Nghi Son gasoline produced from May 6-2018 has not yet consumed and are still located in the warehouse at the South and North.

The expected amount of oversupply when up to 800000-1 million m3 of gas types, putting pressure on the consumption of finished products in 2018 and the coming years.

In particular, the dispatch of Quang Ngai province said according to records is some customers as Petrolimex, the price is very low in recent years makes the domestic gasoline market turmoil. Prices are too low makes discount on the market changes constantly, greatly influence the output and inventory of clues.

Simultaneous dispatch on the scene also said that gasoline consumption in the market goes, BSR also troubled about the policy mechanism. Currently Nghi Son oil refinery is more favorable than the Dung Quat.

“The project Nghi Son enjoying 3% subsidy mechanism with other petrochemical products, liquefied gas 5% and 7% for the Dung Quat oil but no longer enjoy. The application deadline corporate income tax of 10% for the Nghi Son is a lifelong enterprise, while Binh Son is 30 years since the operation … “- documents mentioned.

Since then, the Quang Ngai Provincial Government proposals for BSR mechanism is kept current with a financial incentive mechanism to ensure competitiveness under the market mechanism. Simultaneously with the policy support mechanisms BSR substitute for the Government guarantee for BSR has the financial capacity to mobilize loans on the capital market, promote the project to upgrade and expand.

Besides, Quang Ngai also suggested that the Government consider the adjustment plan approved tax rate of crude oil imports similar to the Nghi Son project entitled.