Ministry of Industry and Trade Addresses the Fate of the Petrol Price Stabilization Fund as Businesses Gain Pricing Autonomy

Businesses Gain Autonomy in Fuel Pricing

One of the most discussed topics at the Ministry of Industry and Trade’s regular press conference was the new draft decree on fuel trading.

A representative from the Domestic Market Management and Development Department, Ministry of Industry and Trade, stated that on January 19th, the Ministry finalized and submitted the proposal to the Government Office. This decree, prepared over three years, includes significant adjustments to align fuel trading more closely with market mechanisms.

Based on feedback from various ministries, the draft will be further refined and submitted to the Government for approval.

A key highlight of the 10th draft is granting fuel wholesalers and distributors the autonomy to set prices. Notably, independent retail outlets—those not affiliated with wholesalers, distributors, or agents—are also empowered to determine their selling prices.

Price adjustments will follow a formula set by the Ministry of Industry and Trade. Businesses will calculate and publicly announce retail prices. However, concerns arise that retail prices might exceed those of wholesalers.

Responding to this, the Domestic Market Management and Development Department emphasized that the decree’s core principle is market-driven pricing within legal boundaries. The fuel distribution system comprises wholesalers, distributors, and retail agents.

“Retail prices reflect actual costs and business strategies, not administrative mandates. Under the new mechanism, wholesalers set retail prices, ensuring agents cannot charge more,” the department clarified.

Stabilization Fund to Transition from Businesses to State Management

In response to Tiền Phong’s inquiry about the Fuel Price Stabilization Fund’s future amid market-driven pricing, Deputy Minister Nguyễn Sinh Nhật Tân stated that the fund will be centralized under state management.

Fund usage will adhere to specific pricing plans, comply with the Law on Prices, and require Government approval. Clear criteria will determine usage based on price fluctuations.

“The stabilization fund is not the sole tool for fuel pricing. The state may employ other measures, including budgetary support, to ensure macroeconomic stability and social welfare,” Deputy Minister Tân emphasized.

Regarding the E10 biofuel rollout from June 1, 2026, the Ministry of Industry and Trade has allocated supply quotas to ensure market continuity. The Ministry will host specialized conferences, inspect fuel producers and distributors, and collaborate with vehicle manufacturers to ensure technical compatibility and consumer protection.

Deputy Minister Nguyễn Sinh Nhật Tân noted that biofuel adoption aligns with global trends in countries like Thailand, China, and the U.S. The E10 initiative supports Vietnam’s COP26 commitment to achieve net-zero emissions by 2050.