Low imports cause Gasoline shortage

Low imports cause Gasoline shortage

The current partial shortage of gasoline and oil has been caused by wholesalers not importing sufficient amounts, says said Deputy Minister of Industry and Trade Do Thang Hai. 
Commissions for retailers being cut amidst fluctuating world prices is also a factor, Hai told the press reporters Tuesday. Fuel retailers said they are suffering losses after their commissions were adjusted downward and many want to close down. 
Wholesalers were importing gasoline and oil when their global prices surged, sometimes by 57-85% against the same period last year, but they had to sell it at lower prices. 
Currently, Vietnamese authorities adjust fuel retail prices every 10 days based on the average prices of the previous 10 days. However, many people including lawmakers have said this cycle is no longer suitable because it leaves domestic prices outdated compared to global prices, which have been unstable of late.

Hai said wholesalers have to cover different costs like freight to bring imported gasoline and oil to Vietnam or to transport domestically produced fuels to ports nationwide, but the costs used by the ministry to calculate the base price are smaller than actual costs borne by the wholesalers.

For these reasons, wholesalers have incurred losses, so they cut back on imports and slashed commissions for retailers, he said.

Some other reasons for the partial fuel shortage include lower production by two domestic refineries and the absence of some wholesalers, Hai said.

The two refineries produced 9.7 million tons of gasoline and oil in the first 10 months, some 170,000 tons lower than the yearly plan, according to the Ministry of Industry and Trade.

Several wholesalers in the south have had their business licenses revoked for administrative wrongdoings, and some others have had customs clearance of imported fuel suspended for failing to meet customs-related requirements like electronic data connections.

The Ministry of Finance has agreed to factor in an increase in the transportation cost of importing fuel, which will enable a hike in retail prices.

The costs is VND290-560 (1.2-2.3 cents) higher for a liter of gas and VND160-660 for diesel, and reflected in retail prices from Nov. 11.

Another solution is increasing national gasoline and oil reserves, Hai said, noting that current reserves were equivalent to just 5-7 days of consumption.

 

Source:

 Vnexpress


 
Ý kiến bạn đọc
Chủ đề liên quan
Có thể bạn sẽ quan tâm

Evolution or extinction

  Learn more about the adoption of evolving technology in the supply chain. Stewart Brand said: “Once a new technology rolls...

Hai Phong - regional logistics service center - Last post: Human resource development levers

Hai Phong has been offering breakthrough policies and solutions, capturing new ideas to further promote advantages, enhance the role of logistics services in the economic structure of the city, strengthen connectivity and create diffusion in the region. However, human resources for this industry are still modest, requiring a sustainable development strategy.

Global 3PL logistics growth rate reaches 9%

The global third-party logistics (3PL) market size is expected to grow from $900 billion (2021) to $990 billion this year at a 9.4% CAGR, according to Business Research Company.

Laos strengthens regional links, connecting East-West Logistics corridors

VOV. VN - Attending the workshop were representatives of relevant ministries, departments and agencies, as well as more than 80 enterprises and investors from Vietnam, Laos and Thailand.

Chu Lai port strongly develops bulk import and export services

After the pandemic, the wave of supply chain shift to Vietnam is opening up opportunities to develop large production areas across the country, including the Central - Central Highlands, leading to great demand for logistics in this region.

Bringing logistics to a position worthy of development potential

With a special geographical position located in the dynamic development region of the world, where the flow of goods is very strong, Vietnam is considered to have geoeconomic strengths that are very favorable to promote production, export and logistics services.

Global logistics activities in 2022 and implications for Vietnam

In the first months of 2022, the global logistics market continues to recover and enters a new phase with the expectation of bringing significant growth for both 2022 and the next period. However, in the face of risks from the Russian-Ukrainian war tensions, the outbreak of the disease in China... is raising the risk of global supply chain disruptions, affecting logistics activities. In the face of complicated developments on a global scale, there are still many difficulties in the short term, requiring logistics businesses and shippers to continue to adjust supply chain and logistics models.

Logistics discusses how to respond to fuel price fluctuations

TTO - In the context of fluctuating fuel prices, escalating prices, logistics enterprises have sat together to discuss solutions and adaptations in this period.

Import and export of goods in 2022 may exceed 700 billion USD

The latest statistics of the General Department of Customs show that, by the end of 11 months, the scale of import and export turnover of goods reached approximately 674 billion USD.

CNL Handled a POWER TRANSFORMER 20/30MVA and OIL-SHELL TR OIL DIALA S4 ZX-I to Brunei.

In July 2022, CNL's Hanoi branch handled a consignment including a POWER TRANSFORMER 20/30MVA weighing approximately 45 tons, as well as its accompanying equipment, and 31 pallet barrels of OIL-SHELL TR OIL DIALA S4 ZX-I.