Đại biểu Quốc hội Hoàng Văn Cường: Nên để các doanh nghiệp quyết định giá xăng dầu Theo Vietstock

The development of the petroleum market requires stability, transparency, and efficiency. This statement was made by National Assembly Delegate Hoang Van Cuong at the conference “Ensuring the stable, transparent, and efficient development of the petroleum market” organized by the Government Electronic Information Portal on the morning of July 30th. Cuong, a member of the National Assembly’s Finance-Budget Committee, believes that the state should not intervene in petroleum prices but should have tools for regulation. If businesses sell at non-market prices or collude to raise prices, they should face state regulation.

Cuong emphasized that petroleum is a strategic commodity that directly impacts people’s lives and production. An increase in petroleum prices affects travel costs, transportation costs, and production inputs, thus directly impacting consumers’ lives and the cost of goods. The sensitivity of this commodity is evident in its dependence on various factors such as global political instability, wars, economic developments, and even natural disasters, which can all affect petroleum prices. These challenges necessitate efforts to stabilize and manage prices not only at the national level but also globally.

In Vietnam, the government has made significant efforts to manage and stabilize petroleum prices. Three primary tools have been utilized for this purpose. The first tool involves price management based on the base price, which dictates the selling prices in the market, determined and adjusted by the government every 7 days. The second tool is the use of taxes to reduce costs during periods of high global prices, while the third tool involves the establishment of stabilization funds. These comprehensive tools have proven effective in managing petroleum prices and preventing sudden shocks.

Despite these efforts, there are still limitations, as prices still need to follow global trends. While the government controls and sets prices, it is also dependent on global fluctuations, with adjustments being made every 7 days at the latest.

There is also a need to address the administrative nature of government-imposed pricing regulations on petroleum businesses, as excessive regulatory control can negatively impact profit margins, leading to circumvention measures by businesses. The use of fiscal and environmental taxes to regulate prices should be considered as a means of encouraging businesses to increase sales and reduce prices rather than controlling sales to increase prices.

Future policy adjustments should focus on shifting from administrative government control to market-based mechanisms. With 70% of domestic petroleum production not entirely dependent on external supply, such a transition is feasible. Allowing businesses to determine prices based on market conditions while implementing regulations to prevent collusion or non-market pricing is essential. The government should employ tax tools to regulate businesses selling at non-market prices or engaging in collusion to maintain fair competition in the market.

“We cannot entirely detach ourselves from international petroleum prices.” This statement by Bui Ngoc Bao, the Chairman of the Vietnam Petroleum Association, underscores the significant sensitivity of petroleum as a commodity and the government’s longstanding interest in its management. Over the past 20 years, the government has made several legislative and policy adjustments to enhance the organization and management of petroleum business. However, a review of existing decrees is needed to address fundamental issues and adapt to changing global dynamics.

The importance of creating a legal framework and conditions for businesses to engage in derivatives trading to stabilize prices is also highlighted, emphasizing the need to recognize derivatives as hedging activities rather than purely financial investments. There is a need for thorough evaluation and substantial improvements to existing decrees to address these issues and create a more balanced, fair, and effective regulatory environment for the petroleum market.

Nhat Quang