Petroleum tricks

Many petrol stations have closed around Vietnam for dubious reasons, resulting in illegitimate gasoline vendors sprouting up.

Many private petrol stations in several localities in Vietnam have closed in the past few weeks, offering excuses such as power failure or technical difficulties. In fact the reason may be the modest profit margin of their sales, prompting them to wait for the regulation prices to increase so they can make a bigger profit.

Filling stations along National Highway 45 and 47 which run through northern central Thanh Hoa Province have either limited their hours or closed completely.

Taking advantage of the situation, many people have opened their own temporary filling stations by the side of the road, charging prices from VND3,000 (USD0.14) to VND5,000 (USD0.24) more than the regulated price. Sometimes prices can reach one and a half times the stipulated limit of VND16,500 (USD0.79) per litre.

Towns like Van Ha and Tho Xuan in Thanh Hoa Province have witnessed a similar situation. For instance, the largest filling station in Vinh Loc District has ceased operation despite the high demand.

In Quang Tien, Quang Cu and Trung Son wards of Sam Son Town, petrol stations have refused to serve customers for the same reasons, “technical problems” or “electricity loss”. There to, many have had to buy bottles of petrol on the road for as much as VND30,000 (USD1.44) each, causing public outrage.

40,000 Dong per litre

People in the northern provinces of Ha Nam and Thai Binh are equally discontent.

Mr Hoang in Ha Nam Province said, “Since the 28th day of lunar December, and in particular, these last couple days, filling stations near my house have purposefully reduced their sales. Sometimes I have to pay up to VND40,000 (USD1.93) on a litre of on the road. On top of this, I worry about its quality.”

Le Anh Tuan from Van Ha Town, Thieu Hoa District, Thanh Hoa Province, wondered, “I do not know why so many gasoline stations have not opened up regular operations in the two weeks since Tet. Meanwhile we have these stalls that are selling questionable fuel at very high prices.”

Mr Son, a taxi driver, says that it is not easy for him to find an operational filling station in rural districts, particularly in the evening. So he too has had to buy the fuel at retail stalls at exorbitant prices.

In many people’s opinion, delaying operations or restricting petrol sales is just a trick for the owners of the filling stations to wait for the regulation prices to increase so they can make a bigger profit. The commission for petroleum sales at filling stations is low, so they may simply deem it not worth the cost of operation.

Petroleum traders in Vietnam have been complaining over losses due to the Government mandated price restrictions. Meanwhile, prices on the global market have increased. The foreign currency exchange rate has been an added burden to domestic traders. Vietnam National Petroleum Corp (Petrolimex), the country’s largest petroleum trader, says it is losing VND2,020 (USD0.097) each litre of gasoline sold. – Dantri

Tags: Vietnam petrol, Vietnam Petrol prices