Petroleum products

Accordingly, the import tax rate for unleaded motor gasoline products under the HS code from 2710.12.21 to 2710.12.29 is reduced from 20 percent to 10 percent. According to the Ministry of Finance, compared with many countries, the proportion of taxes in the base price of petroleum products in Vietnam is still lower than the average. The percentage of taxes in the base price of petroleum products in many countries is about 40-55 percent for gasoline and 35-50 percent for oil, except for some countries with large oil reserves, the proportion is lower. Meanwhile, in Vietnam, with the environmental protection tax rate being cut to the floor level following the resolution approved by the Standing Committee of the National Assembly, the tax proportion in the base price of petrol products is about 19.39 percent for gasoline E5 RON92, 21.95 percent for RON95 gasoline, and about 11.05 percent for diesel. By Lam Nguyen – Translated by Bao Nghi … [Read more...] about MFN tariffs on gasoline products lowered by 10 percent

Revisions to the Petroleum Law are necessary to help boost the oil and gas industry's development. (Photo: VNA) Hanoi (VNA) – After nearly 30 years of enforcement, the Petroleum Law now needs revisions to be in line with international practices and Vietnam’s energy development strategy and create momentum for the oil and gas industry’s development. Nguyen Van Que, General Director of the Cuu Long Joint Operating Company - which is running the Su Tu Trang (White Lion) project, said the overlaps among existing laws such as the Petroleum Law and the Law on Public Investment have been impeding the implementation of exploration and exploitation projects. Citing difficulties his company faced when operating Su Tu Trang, he said in this law, the regulation on capital preservation at risky projects such as oil and gas exploration and exploitation should be amended in order to attract businesses, especially foreign ones. The Cuu Long JOC also proposed Article 47 on the making, … [Read more...] about Comprehensive revisions needed for Petroleum Law

Such a move will help Vietnam diversify oil import sources from China, the US, and the Middle East, and avoid dependence on certain partners amid growing global uncertainties. The Vietnamese Government has agreed to halve the most favored nation (MFN) tariff on petroleum products from 20% to 10%. A gas station on Giai Phong Street, Hanoi. Photo: Viet Dung The decision, which took effect on August 8, was mentioned in the Government’s decree No.51/2022 on the revision of MFN tariff on fuel and gas products. In practice, a 10% cut in MFN tariff would not help Vietnam curb rising petrol prices, as the share of petrol imports subject to such a tariff is insignificant in the total domestic petrol consumption volume. Experts, however, expected such a move would diversify Vietnam’s import sources from countries such as China, the US, or those in the Middle East, and avoid the dependence on certain partners amid growing global uncertainties. The Ministry of … [Read more...] about Vietnamese Gov’t halves MFN tariff on petrol products to 10%

Domestic gasoline prices declined for the fourth consecutive session. They are expected to drop further. — Photo kinhtedothi The Government has just issued a decree stipulating the import tax rate for gasoline products, with a reduction of 10 per cent on organic unleaded gasoline. Decree No. 51/2022/ND-CP amends the preferential “Most Favoured Nation” or “MFN” rates for gasoline products, in which the import tax rate for unleaded petrol (under HS code from 2710.12.21 to 2710.12.29) will be adjusted from 20 per cent to 10 per cent. According to the Ministry of Finance (MoF), compared to other countries, the proportion of tax in the base price of petroleum in Viet Nam is lower. The proportion in many countries was mainly in the range of 40 per cent - 55 per cent for gasoline and 35 per cent - 50 per cent for oil, while it was about 19.39 per cent for E5RON92 gasoline, 21.95 per cent for RON95 gasoline and about 11.05 per cent for diesel in Viet Nam with the environmental … [Read more...] about Gasoline products entitled to 10 per cent discount on preferential import tax

PetroVietnam engineers exert efforts to fulfil the set target. (Photo: PetroVietnam) Hanoi (VNA) - In the second half of 2022, the Vietnam Oil and Gas Group (PetroVietnam) will continue to keep a close watch on market developments. The goal is to monitor world crude oil prices and market fluctuations to optimise reserves and operate oil production efficiently to stay in the black. Opportunities brought into full play, helping crude oil exploitation exceed target by 22% The world’s crude oil price dropped sharply in July and remains on a downward trend. The average price of Brent crude oil in July fell 9% month-on-month. In early August, the price continued to decline and fell to the lowest level since before the Russia-Ukraine conflict. The average price of petroleum products last month also decreased by 13-22% compared to that in June. In addition, the mobilisation of gas-fueled power is still low compared to the plan, and in the coming months, the demand for gas used in … [Read more...] about PetroVietnam optimises market fluctuations to keep oil production in the black

Illustrative image (Photo: VNA) Hanoi (VNA) – Despite various difficulties, the Vietnam National Oil and Gas Group (PetroVietnam) has rolled out measures to keep operations buoyant in the current situation and to engage in energy transition based on the future of the industry. According to the firm, the electrification sector has been greatly impacted by the growth of renewable energy sources. Meanwhile, liquefied natural gas (LNG) power projects under construction must develop a plan for conversion to hydrogen fuel. Gasoline demand in Vietnam is forecast to continue to increase and peak in 2030-2035, while the diesel oil (DO) market is likely to be affected more slowly, and the DO supply shortage is forecast to continue until 2035. According to Binh Son Refining and Petrochemical Joint Stock Company (BSR), in the short term, energy transition has not had a clear impact on the demand for petroleum products in Vietnam. However, in the long term, it is happening … [Read more...] about PetroVietnam rolls out measures to facilitate energy transition

A Petrolimex petrol station. — VNA/VNS Photo The Viet Nam National Petroleum Group (Petrolimex) is adopting a range of solutions in order to complete production and business targets for the third quarter and the entire year in the context of unforeseeable fluctuations in petrol prices. One of the solutions is to modernise inventory management while engaging in negotiations with major petrol distributors to ensure supply to meet demand for petrol. At the same time, the group has taken steps to cut costs in all production and business activities through several projects on centralised fleet management, asset management and customer relationship management. Petrolimex has also worked to increase non-cash payment in retail sales and researched the possibility of building truck stops to provide better services for customers. Under its own plan on digital transformation, the immediate focus is to automate the network of petrol warehouse and retail outlets, and roll out a national … [Read more...] about Petrolimex applies solutions to cope with fluctuations in petrol prices

A Petrolimex petrol station (Photo: VNA) Hanoi (VNA) – The Vietnam National Petroleum Group (Petrolimex) is adopting a range of solutions in order to complete production and business targets of the third quarter and the entire year of 2022 in the context of unforeseeable fluctuations in petrol prices. One of the solutions is to modernise inventory management while engaging in negotiations with major petrol distributors to ensure supply to meet social demand for petrol. At the same time, the group has taken steps to cut costs in all production and business activities through several projects on centralized fleet management, asset management and customer relationship management. Petrolimex has also worked to increase non-cash payment in retail sales and researched the possibility of building truck stops to provide better services for customers. Under its own plan on digital transformation, the immediate focus is to automate the network of petrol warehouse and retail outlets, … [Read more...] about Petrolimex applies solutions to cope with big fluctuations in petrol prices

The decision was taken in July but only announced in August, so many merchants had been doing business with the distributors as usual for over a month. Some of the seven distributors were even negotiating to buy petroleum products from Vietnam’s largest refinery via its sole distributor, the Petrovietnam Nghi Son Refinery Distribution Branch (PVNDB). Under current regulations, it is illegal to trade with businesses that have had their license revoked. The PVNBD has asked the trade ministry for guidance to avoid legal risks. "We are checking our books to see if we’ve worked with the distributors or not, while requesting directions from the authorities," a fuel merchant said. The ministry announcement said 11 other distributors have been fined a total of VND1.7 billion ($72,658) for violating various regulations. … [Read more...] about Seven fuel distributors’ import license revoked for safety, stocking violations

The city is keen to avoid any Covid-19 impacts that could derail its plan for socio-economic recovery for this year. The Hanoi People's Committee has urged local agencies to remain vigilant against the Covid-19 pandemic and accelerate the disbursement of public funds, seen as a key task for socio-economic recovery for the rest of the year. Electronics production at Rhythm Precision Vietnam, Soc Son District, Hanoi. Photo: Pham Hung Among the key tasks, the city would focus on the Covid-19 vaccine roll-out by providing boosters for eligible people, including the completion of vaccination for children aged 5-12 before September 2022, noted the municipal People’s Committee in a directive. The city’s authorities reiterated public investment is a key task for economic development and considered pubic fund disbursement a key criterion to evaluate the performance of each agency, department, and unit by year-end, especially leaders and senior officials. “Efforts … [Read more...] about Hanoi boosts socio-economic growth, but remains vigilant against Covid-19