DECISION

ON ORIENTED SALES PRICES FOR PETROLEUM IN 2005

THE MINISTER OF FINANCE

Pursuant to the Government’s Decree No. 77/ 2003/ND-CP dated July 1, 2003 defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to Government’s Decree No. 170/ 2003/ND-CP dated December 25, 2003 detailing the implementation of a number of articles of the Ordinance on Prices;

Pursuant to Decision No. 187/2003/QD-TTg dated September 15, 2003 of the Prime Minister promulgating the Regulation on management of petroleum business;

Implementing the directions of the Prime Minister in Official Dispatch No. 53/TB-VPCP dated March 24, 2005 of the Government Office announcing the Prime Minister’s opinions on the petroleum price management in 2005;

After consulting with the Ministry of Trade and the Ministry of Planning and Investment,

DECIDES:

Article 1. To unify the oriented prices (including value added tax) in the whole country for several standard kinds of petroleum at actual temperatures as follows:

The real sales prices for petroleum shall be stipulated by the petroleum import enterprises (or attached units and agencies in their distribution systems authorized by them) in accordance with the current guidance of the Ministry of Trade.

The prices of other kinds of petroleum shall be stipulated by the petroleum trading enterprises on the basis of the real sales prices of standard kinds of petroleum in the same market and the differences in their quality as compared with the above-said kinds of petroleum.

Article 2. Selling points

- For wholesale: petroleum shall be delivered at the provincial/municipal central warehouses on buyers’ facilities.

- For retail sale: petroleum shall be delivered at the provincial/municipal petrol stations or retail stores on buyers’ facilities.

Article 3. Responsibilities of the ministries, branches, localities and production and trading units

- According to the directions of the Prime Minister, although the prices of petroleum have been increased, but the prices of main commodities such as electricity, coal, cement, etc., shall not be allowed to increase. The enterprises must save their expenses, especially expenses on petroleum to reduce their production costs.  The petroleum trading enterprises must continue reducing their expenditures on business management by 5% as compared with 2004.

- The Ministry of Trade shall have to direct the petroleum trading enterprises to inventory goods in accordance with the current provisions when adjusting prices to avoid negative effects and ensure the smooth trading activities.

- Enterprises engaging in petroleum import must bear the responsibilities before law for their violations of petroleum sales price caused by their attached units and retail agencies in their distribution systems.

- In case, when the petroleum prices on the world market sharply fluctuate, the Vietnam Petroleum Corporation and other enterprises authorized by the State to import and trade in petroleum must balance the supply and the demand and meet the petroleum demand.

- The provincial/municipal Departments of Finance shall have to coordinate with the Departments of Trade in supervising the implementation of petroleum sales price in localities, timely finding out and handling of violations within their competence in accordance with current provisions or report to competent bodies for handling.

Article 4. This Decision takes effect as from 12:00 am of March 29, 2005 and replaces Decisions No. 56/2004/QD-BTC dated June 18, 2004 of the Minister of Finance and No. 1589/2004/QD-BTM dated November 01, 2004 of the Minister of Trade.