Major fuel distributors to be inspected

The Ministry of Finance has established three inspection teams to look into the pricing management of four major fuel wholesalers.

The inspectors will inspect the pricing of fuel imported by Petrolimex, PetroVietnam Oil, Saigon Petro Co. and Dong Thap Petroleum Trading Co. Ltd., other expenses affecting their operation, as well as their use of the Petrol Price Stabilization Fund.

At a conference on fuel price management held in Hanoi on Tuesday, the Ministry of Industry and Trade strongly criticized the Ministry of Finance’s proposal to cut fuel prices on August 26, saying these wholesalers were suffering losses at that time.

Petrolimex, the country’s largest fuel wholesaler, also lamented its loss of VND1.8 trillion (US$90 million) in the first eight months of this year.

However, its Chairman Bui Ngoc Bao on Wednesday admitted to earning profits between VND129 per liter and VND400 per liter at the time fuel prices were cut.

Nguyen Anh Tuan, Deputy Head of the Ministry of Finance’s Price Management Department, said he was skeptical about this giant distributor’s administrative management.

He said customs data was crucial for the finance ministry to reduce retail prices, and data showed Petrolimex was making a profit of VND780 per liter on top of the fixed profit of VND300 per liter allowed by the government.

But as Petrolimex said its profit was only VND440 per liter, Tuan said the ministry’s audit would determine the real profits these wholesalers were enjoying.

Tuan said inspection would begin next week and the results would be accessible to the public.

Source Tuoitrenews

Tags: Vietnam fuel, Vietnam fuel prices