Vietnam’s Gasoline and Oil Supply: Domestic Production Increases, Imports Decrease
On September 18, the Ministry of Industry and Trade held a meeting to discuss the implementation of the total gasoline and oil supply, along with measures to ensure a stable supply for the remainder of the year.
TOTAL GASOLINE AND OIL SUPPLY: DOMESTIC PRODUCTION INCREASES, IMPORTS DECLINE
At the meeting, Ms. Nguyen Thuy Hien, Deputy Director of the Domestic Market Department, stated that the total minimum gasoline and oil supply for 2024 allocated by the Ministry of Industry and Trade to 36 trading enterprises amounted to 28,437,856 cubic meters/tons.
In terms of domestic production, the two refineries (Dung Quat and Nghi Son) reported a production volume of approximately 11.4 million cubic meters/tons for the first eight months of 2024, representing a 2.1% increase compared to the same period in 2023.
Regarding imports, according to the General Department of Customs, the volume of imported gasoline and oil products during the same period was approximately 8.256 million cubic meters/tons, a 4.3% decrease year-on-year.
Thus, according to reports from the refineries and the General Department of Customs, the total production and import volume of gasoline and oil products for the first eight months of 2024 reached approximately 19.6 million cubic meters/tons (with imports accounting for 42% and domestic production accounting for 58%).
Reports from the trading enterprises indicated that the total volume of imports and domestic purchases for the first eight months of 2024 reached 18.16 million cubic meters/tons, equivalent to 63.7% of the minimum total volume allocated by the Ministry of Industry and Trade. This figure is on par with the same period last year.
In terms of consumption, the country consumed approximately 18 million cubic meters/tons in the first eight months of 2024, representing a 4% increase year-on-year. Inventory levels as of August 2024 were approximately 1.95 million cubic meters/tons, similar to the same period last year, but reflecting an 8% increase compared to 2023.
As of September 2024, 34 trading enterprises were involved in the total supply chain, a decrease of two enterprises compared to the beginning of the year. Among these, 22 enterprises achieved over 60% of their allocated minimum total supply plan for 2024, with six enterprises surpassing 100%.
During the meeting, several enterprises shared insights into the impact of Typhoon No. 3 on their production, business, and distribution operations, especially for those located in the path of the storm.
Mr. Tran Ngoc Nam, Deputy General Director of Petrolimex, stated that around 100 Petrolimex stores were affected by the typhoon, with many experiencing roof damage. In addition, more than 30 stores were flooded and unable to conduct business.
However, Petrolimex ensured a stable supply by maintaining reserves in their warehouses. They also have contingency plans in place in case Typhoon No. 4 affects the country, guaranteeing a steady supply within the Petrolimex system.
ENSURING UNINTERRUPTED SUPPLY FOR THE REMAINDER OF THE YEAR
Looking ahead to the last four months of 2024, the Domestic Market Department anticipates a production volume of approximately 6.6 million cubic meters/tons from the two domestic refineries and imports of approximately 3.6 million cubic meters/tons. Thus, the total production and import volume is expected to reach approximately 10.2 million cubic meters/tons.
Estimated consumption for the last four months of the year is projected to be over 8 million cubic meters/tons, with inventory levels ranging from 1.8 to 2 million tons. According to Ms. Hien, barring any unforeseen circumstances, the gasoline and oil supply for 2024 will be sufficient to meet the demands of production, business, and consumer needs.
Mr. Tran Ngoc Nam added that the demand for gasoline and oil is not expected to fluctuate significantly in the remaining months of the year. While some people in typhoon and flood-affected areas are stockpiling gasoline and oil, this is only a localized phenomenon. Therefore, the domestic supply of gasoline and oil will be adequate to meet the country’s requirements.
To ensure a stable supply of gasoline and oil for the country’s production, business, and consumer needs in the aftermath of Typhoon No. 3, the Domestic Market Department proposed several measures to be implemented in the coming months.
The Ministry of Industry and Trade will instruct trading enterprises to closely monitor their allocated minimum total supply and quarterly plans. They will also keep a close eye on enterprises with low implementation rates.
There will be close coordination with the Departments of Industry and Trade of the provinces and cities to regulate and balance the supply and demand of gasoline and oil in each locality, especially in the northern provinces affected by storms and floods.
If necessary, the Ministry will reallocate the minimum total supply from enterprises that are unable to fulfill their allocation to other trading enterprises to ensure market stability.
Additionally, the Ministry will continue to inspect and supervise the business of gasoline and oil trading enterprises and maintain close coordination with relevant ministries and sectors in managing this essential commodity.
Trading enterprises are required to adhere to the government’s and the Ministry of Industry and Trade’s directives on ensuring a stable supply of gasoline and oil for production, business, and consumer needs. They must proactively produce and import to meet the domestic market’s demands, comply with the allocated minimum total supply for 2024, and maintain reserves as stipulated.
Particularly, enterprises must prevent any interruptions in the supply chain, from wholesalers to distributors and retailers. In all circumstances, they must ensure a steady supply to the retail stores within their distribution system to maintain regular operations. Enterprises should also review and ensure compliance with the conditions and legal provisions for gasoline and oil trading.
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