Decree 95/2021/ND-CP amending and supplementing the Decree 83/2014/ND-CP on petrol and oil trading

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government, and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 14, 2005 Commercial Law;

Pursuant to the June 20, 2012 Law on Price;

At the proposal of the Minister of Industry and Trade,

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading.

Article 1. To amend and supplement a number of articles of the Government’s Decree No. 83/2014/ND-CP of September 3, 2014, on petrol and oil trading (below referred to as Decree No. 83/2014/ND-CP)

1. To amend and supplement Clause 2, Article 2 as follows:

“2. This Decree does not apply to traders that import, export, produce and process petrol and oil of all kinds for their own demand with a volume not exceeding 200 liters/kg/month and without selling them on the market.”

2. To amend and supplement Clauses 1, 3, 7, 9, 10 and 11, Article 3 as follows:

“1. Petrol and oil is a general term used to refer to products of the technological process of distilling and refining crude oil, wastes and other materials to turn out products for use as fuel, including petrol, diesel fuel, kerosene, fuel oil, aviation fuel, biofuel, and other products used as fuel, excluding liquefied gas and compressed natural gas of all kinds.”

“3. Petrol and oil production means the technological process of distilling and refining crude oil, petrol and oil products, semi-finished petrol and oil products, wastes and other materials into petrol and oil products.”

“7. Global petrol and oil prices means prices at which petrol and oil products are traded on the international market as determined and announced by the Ministry of Industry and Trade.”

“9. Base price shall be determined based on price constituents gathered from sources of domestically produced and imported petrol and oil products, and used as a basis for state agencies to determine the regulated price (base price minus (-) level of spending of the Price Valorization Fund), which is the basis for deciding on domestic petrol and oil retail prices (or the wholesale price for fuel oil).

“10. Petrol and oil traders include petrol and oil key traders; petrol and oil key producers; petrol and oil distributors; petrol and oil general agents; petrol and oil retail agents; petrol and oil retail franchisees, and petrol and oil service providers.”

“11. Key traders include petrol and oil key traders and petrol and oil key producers.

Petrol and oil key traders are traders that purchase petrol and oil directly from oil refineries (or from enterprises franchised to sell all petrol and oil products for the oil refineries which do not directly sell its finished petrol and oil products) or import petrol and oil for their own systems, sale to other petrol and oil traders, and export.

Enterprises franchised to sell all petrol and oil products of oil refineries are entitled to export and import finished petrol and oil products to ensure petrol and oil sources for supply to petrol and oil key traders under the guidance of the Ministry of Industry and Trade.

 Petrol and oil key producers are traders that carry out the technological process of distilling and refining crude oil, petrol and oil products, semi-finished petrol and oil products, wastes, and other materials into petrol and oil products.”

3. To add Clauses 17, 18, 19 and 20 to Article 3 as follows:

“17. Biofuels referred to in this Decree include petrol, diesel fuel and ethanol fuel specified in the national technical regulation on petrol, diesel fuels and biofuels issued by the Ministry of Science and Technology.”

“18. Ownership of petrol and oil trading facilities (including petrol and oil retail stations, depots, vehicles, piers, filling instruments, laboratories, and other means serving petrol and oil production and trading) referred to in this Decree means an owner holding private ownership or common ownership by share with its share accounting for at least 35% of the value of such facilities as of the time of ownership establishment.”

“19. To remove the term “co-ownership” referred to in Decree No. 83/2014/ND-CP.”

“20. Small-scale petrol and oil sale devices means petrol and oil sale devices installed at fixed filling stations which have been registered with competent agencies and controlled in terms of measurement and fire prevention and fighting safety and other requirements in accordance with law. The Ministry of Industry and Trade shall issue detailed guidance on the limit capacity of small-scale petrol and oil sale devices.”

4. To add Article 5a below Article 5 as follows:

“Article 5a. Transfer of shares to foreign investors

In addition to petrol and oil traders that have received the Prime Minister’s approval of contribution of capital by or transfer of shares to foreign investors, if other petrol and oil traders that are engaged in petrol and oil production wish to transfer their shares to foreign investors, they shall obtain permission from the Prime Minister.”

5. To rename petrol and oil exporters/importers referred to in Decree No. 83/2014/ND-CP as petrol and oil key traders. To change petrol and oil export/import licenses into certificates of eligibility for acting as petrol and oil key traders.

To modify Forms No. 1, No. 2 and No. 3 provided in, and add Forms No. 3a and No. 4a to, the Appendix of Decree No. 83/2014/ND-CP.

6. To amend and supplement Clauses 3, 4, 5 and 7, Article 7 as follows:

 “3. Having a depot with a minimum capacity of 15,000m³ (fifteen thousand cubic meters) to receive imported petrol and oil directly from petrol and oil tankers and other dedicated vehicles for petrol and oil transportation, which is under the trader’s ownership or hired from a petrol and oil trader for a term of at least 5 (five) years.”

“4. Having vehicles for domestic transportation of petrol and oil which are under the trader’s ownership or hired from a petrol and oil trader for a term of at least 5 (five) years.”

“5. Having a petrol and oil distribution system consisting of at least 10 (ten) petrol and oil retail stations which are under the trader’s ownership or hired for a term of at least 5 (five) years, of which at least 5 (five) stations are under the trader’s ownership; consisting of at least 40 (forty) petrol and oil general agents or retail agents or petrol and oil retail franchisees in the trader’s distribution system.”

“7. Aviation fuel key traders are not required to possess a distribution system specified in Clause 5 of this Article, but must additionally satisfy the following conditions:

- Having vehicles for transporting and filling aviation fuel in conformity with the regulations and standards on aviation fuel which are under the trader’s ownership or hired for a term of at least 5 (five) years.

- Having depots at aerodromes with equipment and physical foundations meeting the standards on aviation fuel which are under the trader’s ownership or hired for a term of at least 5 (five) years.

- Having capable laboratories which are under the trader’s ownership or hired for controlling the quality of aviation fuel according to the national or international standards as currently prescribed.”

7. To amend and supplement Points a and d, Clause 2, and Clause 6, Article 8 as follows:

“a/ In case of application for a new license, a dossier must comprise:

- An application for a certificate of eligibility for acting as petrol and oil key trader, made according to Form No. 1 provided in the Appendix to this Decree;

- A copy of the enterprise registration certificate;

- A list of physical and technical foundations for petrol and oil trading as specified in Clauses 2, 3 and 4, Article 7 of this Decree, enclosed with supporting documents;

- A list of petrol and oil retail stations which are under the trader’s ownership or hired, and a list of petrol and oil general agents, petrol and oil retail agents, and petrol and oil retail franchisees in the trader’s petrol and oil distribution system as specified in Clause 5, Article 7 of this Decree, enclosed with supporting documents.”

“d/ When a certificate of eligibility for acting as petrol and oil key trader is about to expire, the trader shall make a dossier of application for a new license as specified at Point a of this Clause and send it to the Ministry of Industry and Trade at least 30 (thirty) working days before the certificate expires.”

“6. The Ministry of Industry and Trade may revoke certificates of eligibility for acting as petrol and oil key traders. Such a certificate will be revoked in the following cases: The trader does not carry out petrol and oil trading activities for 1 (one) quarter or longer; the trader fails to meet the requirement on total minimum petrol and oil sources assigned by the Ministry of Industry and Trade for 2 (two) consecutive years; the trader goes bankrupt in accordance with law; the trader fails to fully meet the conditions specified in Article 7 of this Article; the trader fails to reserve petrol and oil under Article 31 of this Decree; the trader repeatedly violates this Decree’s provisions on quality of petrol and oil in market circulation, and other cases prescribed by law.”

8. To amend Clauses 1, 2, 7, 11 and 18 of, and add Clauses 20 and 21 to, Article 9 as follows:

“1. To be allocated by the Ministry of Industry and Trade total minimum petrol and oil sources every year.”

“2. To import or domestically purchase materials for petrol and oil processing, and notify such to customs offices for carrying out import procedures and controlling the import.”

“7. To ensure that petrol and oil volumes for supply are not lower than total minimum sources allocated by the Ministry of Industry and Trade for the whole year on a quarterly basis or under the guidance of the Ministry of Industry and Trade; to ensure the petrol and oil quality, volume, structure of categories and compulsory minimum reserve level specified in Clause 1, Article 31 of this Decree.”

“11. Petrol and oil key traders are petrol and oil owners within their entire petrol and oil distribution systems, except cases in which petrol and oil are sold to other petrol and oil key traders or petrol and oil distributors and petrol and oil retail franchisees. Petrol and oil key traders shall register their distribution systems under regulations of the Ministry of Industry and Trade.”

“18. To authorize their subsidiaries to exercise some powers concerning petrol and oil trading under the guidance of the Ministry of Industry and Trade.”

“20. Petrol and oil key traders shall set aside, use and manage the Petrol and Oil Price Valorization Fund and implement regulations on reporting and publicity under this Decree and the guidance of the Ministry of Finance.”

“21. In case a petrol and oil key trader has its certificate of eligibility for acting as petrol and oil key trader revoked, does not renew its expired certificate, stops operating as a petrol and oil key trader at its own discretion, or falls bankrupt or is dissolved, the trader shall transfer the whole balance of the Petrol and Oil Price Valorization Fund (if such balance is positive) into the state budget.”

9. To amend and supplement Clauses 1, 3 and 8, Article 11 as follows:

 “1. To purchase domestic raw materials, directly import materials or finished petrol and oil products or entrust traders possessing certificates of eligibility for acting as petrol and oil key traders to do so. The import of materials or finished petrol and oil products must comply with plans certified by the Ministry of Industry and Trade, and shall be notified to customs offices for carrying out import procedures and controlling the import.”

“3. To sell their petrol and oil products on the domestic market through their distribution systems under Clause 8 of this Article or sell them to other key traders. In addition, they may sell special-type petrol and oil products (which are not permitted for market circulation) to relevant units on the Prime Minister-approved list for use for security or national defense purposes.”

“8. To organize domestic petrol and oil distribution systems under Clauses 4 and 5, Article 7; and Clauses 3, 4, 9 thru 18, Article 9 of this Decree, and to be granted by the Ministry of Industry and Trade certificates of eligibility for acting as petrol and oil key traders.”

10. To amend Clauses 2, 3 and 5, Article 13 as follows:

 “2. Having depots or tanks with a capacity of at least 2,000 m³ (two thousand cubic meters) which are under the trader’s ownership or hired from a petrol and oil trader for a term of at least 5 (five) years.”

“3. Having vehicles for transporting petrol and oil which are under the trader’s ownership or hired from a petrol and oil trader for a term of at least 5 (five) years.”

“5. Having a petrol and oil distribution system located in 2 (two) or more provinces or centrally run cities, including at least 5 (five) petrol and oil retail stations which are under the trader’s ownership or hired from a petrol and oil trader for a term of at least 5 (five) years, of which at least 3 (three) stations are under the trader’s ownership; or at least 10 (ten) petrol and oil retail stations under petrol and oil retail agents or franchisees that are granted certificates of eligibility of petrol and oil retail stations under Article 25 of this Decree.”

11. To amend Point d, and add a content to Point a, Clause 2, Article 14 as follows:

To add the following content to Point a:

“- A copy of the petrol and oil trading contract signed between the applying trader and the trader supplying petrol and oil.”

To amend Point d as follows:

“d/ When a certificate of eligibility for acting as petrol and oil distributor is about to expire, the trader shall make a dossier of application for a new certificate as specified at Point a of this Clause and send it to the Ministry of Industry and Trade at least 30 (thirty) working days before the certificate expires.”

12. To amend and supplement Clauses 1 and 4, Article 15 as follows:

“1. To purchase petrol and oil from more than one petrol and oil key trader and other petrol and oil distributors under petrol and oil trading contracts.”

“4. Apart from retailing petrol and oil at their petrol and oil retail stations, franchising petrol and oil retail traders, and selling petrol and oil to units that use petrol and oil directly for production activities, to consign petrol and oil to traders to act as their agents defined in the Commercial Law under Article 19 of this Decree, provided such traders do not violate Clauses 2 and 3, Article 21 of this Decree.”

13. To amend and supplement Clauses 2, 3 and 4, Article 16 as follows:

“2. Having depots or tanks with a capacity of at least 2,000m³ (two thousand cubic meters) which are under the trader’s ownership or hired from a petrol and oil trader for a term of at least 5 (five) years.”

“3. Having vehicles for transporting petrol and oil which are under the trader’s ownership or hired from a petrol and oil trader for a term of at least 5 (five) years.”

“4. Having a petrol and oil distribution system consisting of at least 5 (five) petrol and oil retail stations which are under the trader’s ownership or hired for a term of at least 5 (five) years, of which at least 3 (three) stations are under the trader’s ownership; or at least 10 (ten) petrol and oil retail stations of agents which are granted certificates of eligibility of petrol and oil retail stations under Article 25 of this Decree.”

14. To amend Point d, Clause 3, Article 17 as follows:

 “d/ When a certificate of eligibility for acting as petrol and oil general agent is about to expire, the trader shall make a dossier of application for a new certificate as specified at Point a of this Clause and send it to a competent agency at least 30 (thirty) working days before the certificate expires.”

15. To amend and supplement Clause 2, Article 19 as follows:

“2. Having petrol and oil retail stations which are under the trader’s ownership or hired for a term of at least 5 (five) years which are granted certificates of eligibility of petrol and oil retail stations under Article 25 of this Decree.”

16. To amend and supplement Clause 3, Article 20 as follows:

“3. A trader acting as petrol and oil retail agent that has only 1 (one) petrol and oil retail station which is under its ownership or hired is not required to obtain a certificate of eligibility for acting as petrol and oil retail agent.”

17. To amend and supplement Clause 2, Article 22 as follows:

“2. Having petrol and oil retail stations which are under the trader’s ownership or hired for a term of at least 5 (five) years and granted certificates of eligibility of petrol and oil retail stations under Article 25 of this Decree.”

18. To amend and supplement Clauses 2 and 3, Article 24 as follows:

“2. Being owned or hired for a term of at least 5 (five) years from a trader acting as a petrol and oil retail agent or petrol and oil general agent or petrol and oil retail franchisee or petrol and oil distributor or petrol and oil key trader, or petrol and oil key producer organizing a distribution system under this Decree (the applying trader must be named in the certificate of eligibility of petrol and oil retail station). In case of hiring a petrol and oil retail station, the trader must be named in the certificate of eligibility of petrol and oil retail station;”

“3. Being designed, built and equipped according to the national technical regulation on design requirements for petrol and oil stations while meeting fire prevention and fighting safety and environmental protection requirements set by competent state management agencies.”

19. To add Article 24a as follows:

“Article 24a. Small-scale petrol and oil sale devices

Small-scale petrol and oil sale devices shall be permitted for operation if meeting the following requirements:

1. Being controlled in terms of measurement and inspected in terms of safety by competent agencies under regulations.

2. Being operated in deep-lying and remote areas under the guidance of the Ministry of Industry and Trade in accordance with current regulations.

3. Being owned by traders that are petrol and oil retail agents or petrol and oil general agens or petrol and oil retail franchisees or petrol and oil distributors or petrol and oil key traders or petrol and oil key producers with distribution systems under this Decree.

4. Petrol and oil traders using small-scale petrol and oil sale devices shall send a dossier of notification to the provincial-level Department of Industry and Trade of the locality where the devices are installed for the latter to issue a receipt of such notification.

a/ A dossier of request for issuance of a receipt of notification of petrol and oil trading with small-scale petrol and oil sale devices must comprise:

- A notice of petrol and oil trading with small-scale petrol and oil sale devices, made according to Form No. 3a provided in the Appendix to this Decree.

- A copy of the relevant certificate of acting as a petrol and oil trader as prescribed in this Decree.

- Copies of certificates of fire prevention and fighting training of staff members who are directly engaged in petrol and oil trading.

- A copy of the certificate of inspection of small-scale petrol and oil sale devices.

b/ Past 5 (five) working days from the date of receiving a complete dossier of notification of petrol and oil trading with small-scale petrol and oil sale devices, the provincial-level Department of Industry and Trade shall issue a receipt of such notification according to Form No. 4a provided in the Appendix to this Decree and send it to the dossier-submitting trader. If finding the dossier incomplete, within 3 (three) working days after receiving it, the provincial-level Department of Industry and Trade shall request in writing the trader to complete the dossier.

5. In case a trader wishes to change information in the receipt of notification of petrol and oil trading with small-scale petrol and oil sale devices, the trader shall submit documents proving the change, or in case the receipt is missing or damaged, the trader shall submit a dossier specified at Point a, Clause 4 of this Article to the provincial-level Department of Industry and Trade for re-issuance of the receipt.”

20. To supplement Point a, and amend Point d, Clause 2, Article 25 as follows:

 “a/ In case of application for a new certificate, a dossier must comprise:

- An application for a certificate of eligibility of a petrol and oil retail station, made according to Form No. 3 provided in the Appendix to this Decree;

- A copy of the applying trader’s enterprise registration certificate;

- A list of equipment of the petrol and oil retail station as specified in Clause 3, Article 24 of this Decree and documents proving the lawful construction of the station;

- Copies of training certificates or equivalent papers of managers and staffs of the station as specified in Clause 4, Article 24 of this Decree;

- Copies of documents certifying supply of petrol and oil to the trader’s petrol and oil stations;

- A copy of the legal paper proving the applying trader’s ownership of the station or hiring of the station for a term of at least 5 (five) years.”

“d/ In case a certificate of eligibility of a petrol and oil retail station is about to expire, the trader shall make a dossier of application for a new certificate as specified at Point a of this Clause and send it to the provincial-level Department of Industry and Trade at least 30 (thirty) days before the certificate expires. In case there is no new construction or expansion of the petrol and oil station, a dossier of request for re-grant of a certificate is not required to comprise documents proving the lawful construction of the station.”

21. To amend Clause 6, Article 26 as follows:

“6. To cease the sale of petrol and oil only after obtaining the written approval of provincial-level Departments of Industry and Trade, except cases of force majeure events (fire, explosion or flood or when traders have applied remedies but cannot maintain sale activities).”

22. To amend Clauses 1 and 4, Article 29 as follows:

“1. To provide the service of leasing ports and depots for receiving petrol and oil and the service of transporting and filling petrol and oil under signed contracts.”

“4. To strictly comply with regulations on other petrol and oil trading activities (acting as petrol and oil key traders, petrol and oil distributors, petrol and oil general agents, petrol and oil agents, or petrol and oil retail franchisees) if carrying out such activities.”    

23. To amend and supplement Article 31 as follows:

“1. From the effective date of this Decree, petrol and oil key traders and petrol and oil key producers that organize their own petrol and oil distribution systems shall maintain a minimum compulsory petrol and oil reserve level equal to 20 (twenty) days’ supply volume calculated based on the average daily domestically sold volume of petrol and oil in the preceding year, even in terms of the structure of petrol and oil categories, including reserve for national energy security and compulsory circulation reserve.    

2. From the effective date of this Decree, petrol and oil distributors shall maintain a minimum compulsory petrol and oil reserve level equal to 5 (five) days’ supply volume calculated based on the average daily domestically sold volume of petrol and oil in the preceding year, even in terms of the structure of petrol and oil categories.    

3. From the effective date of this Decree, petrol and oil key producers shall maintain a minimum compulsory petrol and oil reserve level under current regulations on petrol and oil reserves.

4. The mechanisms for use of compulsory petrol and oil reserves must comply with the law on national reserves and/or instructions of the Ministry of Industry and Trade in order to ensure supply-demand balance and market stabilization when necessary.”

24. To amend and supplement Article 33 as follows:

“Article 33. Total minimum petrol and oil sources

1. Every year, based on the national economy’s demand for petrol and oil and domestically produced petrol and oil sources, the Ministry of Industry and Trade shall identify the demand for total petrol and oil sources for the subsequent year. The demand for petrol and oil for national defense shall be identified separately.

2. Based on the identified demand based on the total volume of petrol and oil domestically sold in the preceding year and volumes registered by petrol and oil key traders, the Ministry of Industry and Trade shall allocate total minimum petrol and oil sources for domestic sale for the whole year by structure of petrol and oil categories to each trader possessing a certificate of eligibility for acting as petrol and oil key trader.

3. When necessary, in order to ensure supply sources, the Ministry of Industry and Trade shall determine specific schedules of importing petrol and oil or domestically purchasing petrol and oil for key traders to comply with.

4. Based on market demands, petrol and oil key traders shall decide on the total volume of petrol and oil of all categories for domestic sale, which must not be lower than the allocated minimum sources.

5. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related ministries and sectors in, inspecting and supervising the traders in ensuring total minimum petrol and oil sources in order to meet economic and social consumption demands. When necessary, the Ministry of Industry and Trade may adjust total minimum sources already allocated to the traders.”

25. To amend and supplement Article 34 as follows:

“Article 34. Procedures for registration of total minimum petrol and oil sources

1. Based on the petrol and oil sale situation in the year and development plan for the subsequent year, petrol and oil key traders shall register total minimum petrol and oil sources with the Ministry of Industry and Trade.

2. A registration dossier shall be made in 1 (one) set comprising:

a/ A request for registration, clearly stating the volume and categories of petrol and oil registered for allocation of total minimum sources.

b/ The requesting trader’s report on petrol and oil trading in the year.”

26. To amend and supplement Article 37 as follows:

“Article 37. Petrol and Oil Price Valorization Fund

1. The Petrol and Oil Price Valorization Fund is a financial fund not included in the state budget balance (below referred to as the Price Valorization Fund); all amounts set aside for the Fund may only be used for regulating, and supporting the valorization of, domestic sale prices of petrol and oil.

Petrol and oil key traders shall set aside the Price Valorization Fund; account and separately monitor Fund via their accounts opened at commercial banks or foreign bank branches lawfully operating in Vietnam (below collectively referred to as banks) according to this Decree and the guidance of the Ministry of Finance. Petrol and oil key traders shall take the whole responsibility before law for the selection of banks, and management and safety assurance of the balance of the Price Valorization Fund.

2. Setting aside and use of the Price Valorization Fund

a/ The amount set aside for the Price Valorization Fund is a constituent of the base price of petrol and oil; it is a specific money amount calculated per liter or kilogram of actually sold petrol or oil (VND/liter or kilogram) according to the Ministry of Industry and Trade’s notice of regulated petrol and oil prices.

At the time of regulating petrol and oil prices, if the balance of the Price Valorization Fund is large, the Ministry of Industry and Trade shall consider reducing the amount to be set aside for or suspending the setting aside of the Price Valorization Fund.

b/ The amount to be used from the Price Valorization Fund is a specific money amount calculated per liter or kilogram of actually sold petrol or oil (VND/liter or kilogram) according to the Ministry of Industry and Trade’s notice of regulated petrol and oil prices, which may be flexibly adjusted in case the base prices see a big increase or the increase of petrol and oil prices affects socio-economic development and people’s life.

Petrol and oil key traders may only use the Price Valorization Fund according to the Ministry of Industry and Trade’s notice of regulated petrol and oil prices but not for other purposes.

c/ The Ministry of Industry and Trade shall, based on realities, the balance of the Price Valorization Fund, and changes in the base price of petrol and oil at the time of regulating petrol and oil prices, decide on the amount to be set aside for and amount to be used from the Price Valorization Fund after reaching agreement with the Ministry of Finance.

d/ The amounts set aside for and used from the Price Valorization Fund in a period shall be cleared against and timely remitted into the bank account of the Price Valorization Fund; the balance of the deposit account of the Price Valorization Fund is eligible for an interest calculated at the interest rate applied to payment deposit accounts by the bank where a petrol and oil key trader opens its deposit account for the Price Valorization Fund in such period. The interest accrued on such account shall be accounted into the Price Valorization Fund.

A petrol and oil key trader shall use the Price Valorization Fund according to the regulation notice of the Ministry of Industry and Trade but, as of the time when the balance of its deposit account for the Price Valorization Fund is 0 (zero), the trader may borrow loans or use lawful financial sources to cover the excessive amount used from the Price Valorization Fund (when the Fund’s balance is negative).

- In case a petrol and oil key trader borrows bank loans to cover the excessive amount used from the Price Valorization Fund, interests on such loans shall be calculated at the lowest interest rate applied at the bank from which the trader borrows the loans.

- In case a petrol and oil key trader uses lawful financial sources to cover the excessive amount used from the Price Valorization Fund, the interest rate for such loans shall at most equal the lowest interest rate applied to payment deposit accounts by 1 (one) of the banks where the trader opens its deposit accounts for the Price Valorization Fund.

3. Petrol and oil key traders shall publicize in their electronic media or in the mass media information on the setting-aside and use of, interests on, and the balance of the Price Valorization Fund and, at the same time, report thereon to the Ministry of Finance and Ministry of Industry and Trade.

4. Petrol and oil key traders shall organize the setting aside, use, and management of the Price Valorization Fund and report and publicize such information in accordance with this Decree and guidance of the Ministry of Finance. Violating traders shall, depending on the severity of their violations, be administratively sanctioned under the Government’s Decree No. 109/2013/ND-CP of September 24, 2013, on sanctioning of administrative violations in the management of prices, charges and fees, and invoices, and the Government’s Decree No. 49/2016/ND-CP of May 27, 2016, amending and supplementing a number of articles of Decree No. 109/2013/ND-CP, and revising or replacing documents (if any). Petrol and oil key traders that commit repeated violations shall be subject to suspension from business operations or revocation of certificates of eligibility for acting as petrol and oil key traders under current law.

5. The Ministry of Finance shall guide the method of setting aside, use, and management of the Price Valorization Fund; size of the Price Valorization Fund; inspection and supervision of petrol and oil key traders in observing regulations on setting-aside and use of the Price Valorization Fund.”

27. To amend and supplement Article 38 as follows:

“Article 38. Principles of regulating petrol and oil prices

“1. Petrol and oil sale prices are subject to the state-controlled market mechanism, ensuring conformity with petrol and oil price fluctuations in the world and socio-economic conditions in each period.

2. Petrol and oil key traders and petrol and oil distributors may decide on wholesale prices of petrol and oil. Based on their practical conditions, petrol and oil key traders and petrol and oil distributors may decide on retail prices of petrol and oil (or wholesale prices for fuel oil) for application in their distribution systems in conformity with their actual expenses, which must not exceed the regulated prices announced by competent state agencies.

For areas far from ports, far from key warehouses or far from petrol and oil production facilities, if petrol and oil key traders have to pay high reasonable and valid expenses (already audited), resulting in petrol and oil sale prices higher than the regulated prices, these traders may decide on sale prices applicable to such areas (already notified to the Ministry of Industry and Trade) to offset arising expenses which, however, must not exceed 2% of the regulated prices announced at the relevant time.

 Right after deciding on petrol and oil sale prices, petrol and oil key traders and petrol and oil distributors shall notify them to the Ministry of Industry and Trade and Ministry of Finance.

3. Time for regulating petrol and oil prices

The time for regulating petrol and oil prices is the 1^st, 11^th and 21^st every month. In case the time for regulation falls on a weekend or holiday under the State’s regulations, it shall be forwarded to the working day following such weekend or holiday. In case the time for regulating petrol and oil prices falls on a lunar New Year holiday, it shall be forwarded to the subsequent period of price regulation.

In case petrol and oil prices see abnormal fluctuations, greatly affecting the socio-economic development and people’s livelihood, the Ministry of Industry and Trade shall report the time for regulating petrol and oil prices to the Prime Minister for consideration and decision as appropriate.

4. In case price constituents fluctuate, making the base price increase by more than 10% (ten percent) against the preceding base price or in case petrol and oil prices fluctuate, greatly affecting the socio-economic development and people’s livelihood, the Ministry of Industry and Trade shall report specific measures of price regulation to the Prime Minister for consideration and decision.

5. Petrol and oil commodities subject to the State-announced base prices are those commonly consumed on the market.”

28. To add Article 38a below Article 38 regarding base price formula as follows:

“Article 38a. Base price formula

1. Petrol or oil base price equals (=) imported petrol or oil price multiplied by (x) rate (%) of volume of imported petrol or oil plus (+) domestically produced petrol or oil price multiplied by (x) rate (%) of volume of domestically produced petrol or oil, of which:

a/ Base price constituents, including related taxes for calculating petrol and oil base prices under this Decree, are only used for calculating petrol and oil base prices.

b/ Rate (%) of volume of domestically produced and imported petrol or oil for calculating the base price shall be determined every quarter; percentage of volume of the preceding quarter shall be applied for calculating the base price for the times for regulating the base price of the subsequent quarter.

Every quarter, based on the Ministry of Finance-supplied data on volume of imported petrol and oil and petrol and oil key producers’ reports on volume of domestically sold petrol and oil (from the 21^st of the month preceding the first month of the quarter to the 20^th of the last month of the quarter), the agency in charge of regulating petrol and oil prices shall calculate and determine the percentage (%) of the volume of domestically produced and imported petrol and oil for calculating their base prices.

c/ Imported petrol or oil price equals (=) global petrol or oil price plus (+) freight charge for transporting petrol or oil from abroad to a Vietnamese port plus (+) norm-based business expense plus (+) amount set aside for the Price Valorization Fund plus (+) norm-based profit plus (+) related taxes (import duty, excise tax (if any), environmental protection tax (if any), and value-added tax) plus (+) charges and other deductions under current law.

Of which:

- The global petrol or oil price shall be determined by the Ministry of Industry and Trade on the principle of averaging the number of days of pricing in the interval of two times of announcing the base prices of the petrol or oil product traded in the international market.

- Freight charge for transporting petrol or oil from abroad to Vietnamese ports (plus (+) or minus (-) premium which is an element for adjusting prices in petrol and oil import contracts, insurance cost, freight charge, and other expenses, if any) shall be determined by the Ministry of Finance by the weighted average pricing method based on the volume of imported petrol or oil and notify them to the Ministry of Industry and Trade for application in the base price formula. The Ministry of Finance shall review and adjust the freight charge for transporting petrol and oil from abroad to Vietnamese ports once every 6 months (except cases of abnormal price fluctuations).

- Petrol or oil import duty shall be determined on the basis of weighted average import duty rate multiplied by (x) (global petrol or oil price plus (+) freight charge for transporting petrol or oil from abroad to Vietnamese ports) multiplied by (x) foreign exchange rate. Of which, the weighted average import duty rate shall be determined on a quarterly basis based on the imported petrol or oil volume (in the period from the 21^st of the month preceding the first month of the quarter to the 20^th of the last month of the quarter) and weighted average import duty rate (%) of the preceding quarter serving as a basis for calculating the base price of the subsequent quarter. Foreign exchange rates must comply with Clause 9, Article 1 of Decree No. 59/2018/ND-CP of April 20, 2018, and revising or replacing documents (if any).

The weighted average import duty rate (%) shall be determined by the Ministry of Finance and notified to the Ministry of Industry and Trade for application for calculating import duty in the formula for calculating imported petrol and oil prices.

- Excise tax (if any) equals excise tax calculation price multiplied by (x) excise tax rate, of which excise tax calculation price shall be determined on the basis of base price constituents guided by the Ministry of Finance for the Ministry of Industry and Trade to calculate and use it in the base price formula. Excise tax rates must comply with the current law on excise tax.

Environmental protection tax (if any), value-added tax, charges and other deductions must comply with current law.

- Norm-based business expense and norm-based profit shall be determined by the Ministry of Finance and notified every year for the Ministry of Industry and Trade to apply it in the formula for petrol and oil base price calculation.

- Amounts set aside for the Price Valorization Fund must comply with notices of the Ministry of Industry and Trade at the time of base price announcement.

d/ Domestically produced petrol and oil prices

Domestically produced petrol or oil price is inclusive of and equals (=) global petrol or oil price plus (+) or minus (-) premium (if any) plus (+) freight charge for transporting petrol or oil from domestic oil refineries to ports (if any) plus (+) norm-based business expense plus (+) amount set aside for the Price Valorization Fund plus (+) norm-based profit plus (+) related taxes and charges and other deductions under current regulations.

Of which:

- Premium for calculating domestically produced petrol or oil price (if any) is an element for adjusting prices in petrol or oil trading contracts between petrol and oil key traders and petrol and oil key producers or enterprises franchised to sell all petrol and oil products of oil refineries, and shall be determined by the volume-based weighted average pricing method. Premium for calculating domestically produced petrol or oil price must not exceed the global average price multiplied by (x) the lowest special import duty rate for petrol or oil according to international commitments (in case the lowest special import duty rate for petrol or oil is higher than 0%).

Premium and freight charge for transporting petrol and oil from domestic oil refineries to ports (if any) shall be reviewed and adjusted by the Ministry of Finance once every 6 months (except cases of abnormal fluctuations) and notified to the Ministry of Industry and Trade for application in the base price formula.

Related taxes and charges and other deductions must comply with current law.

- Price constituents include global petrol and oil price, excise tax (if any), norm-based business expense, norm-based profit, and amount set aside for the Price Valorization Fund must comply with Point c, Clause 1 of this Article.

2. Bio-petrol base price equals (=) volume-based percentage (%) of non-lead petrol multiplied by (x) {(global petrol price plus (+) freight charge for transporting petrol from abroad to Vietnamese ports plus (+) import duty-related expense) multiplied by (x) volume-based proportion of imported petrol plus (+) global petrol price plus (+) premium plus (+) freight charge for transporting petrol from domestic oil refineries to ports (if any)) multiplied by (x) volume-based proportion of domestically produced petrol} plus (+) volume-based percentage of ethanol fuel (%) multiplied by (x) ethanol fuel price plus (+) norm-based business expense plus (+) amount set aside for the Price Valorization Fund plus (+) norm-based profit plus (+) related taxes and charges and other deductions under current law, of which:

- Volume-based percentage of non-lead petrol and volume-based percentage of ethanol fuel used for bio-petrol base price calculation under this Decree are the allowable highest percentages of mixture specified by competent agencies in conformity with each type of bio-petrol; the actual percentage of mixture must be within the limit set by competent agencies.

- Ethanol fuel price used in the formula for bio-petrol base price calculation shall be determined by the Ministry of Finance and notified to the Ministry of Industry and Trade for application in the base price formula.

- Price constituents include global petrol price, freight charge for transporting petrol from abroad to Vietnamese ports, premium for calculating domestically produced petrol price, freight charge for transporting petrol from domestic oil refineries to ports (if any), petrol import duty, excise tax, norm-based business expense, amount set aside for the Price Valorization Fund, and norm-based profit must comply with Point c, Clause 1 of this Article.

3. Review and adjustment of base price constituents

a/ On the 21^st of the last month of every quarter, petrol and oil key producers shall summarize and report to the Ministry of Industry and Trade and Ministry of Finance on the volume of each type of sold petrol and oil for the period from the 21^st of the month preceding the first month of the quarter to the 20^th of the last month of the quarter.

b/ On the 21^st every month, petrol and oil key traders shall send reports on prices of domestically purchased ethanol, prices of imported ethanol, and volume of domestically purchased and imported ethanol to the Ministry of Finance and Ministry of Industry and Trade.

c/ Before June 21 and December 21 every year, petrol and oil key traders shall send reports on freight charges for transporting petrol and oil to Vietnamese ports, premium for domestic petrol and oil sources, and freight charges for transporting petrol and oil from domestic oil refineries to ports (if any) to the Ministry of Finance.

d/ Before March 31 every year, petrol and oil key traders shall carry out specialized audit of petrol and oil trading expenses and send reports thereon to the Ministry of Finance and Ministry of Industry and Trade.

dd/ In case a reporting day falls on a weekend or holiday, reports shall be sent on the working day following such weekend or holiday. Key traders shall take the whole responsibility for the accuracy of reported data.

e/ Based on reports of key traders, the Ministry of Finance shall summarize, review, evaluate, and carry out field surveys (if necessary) in order to consider and decide on freight charges for transporting petrol and oil from abroad to Vietnamese ports, premium for domestic petrol and oil sources, freight charges for transporting petrol and oil from domestic oil refineries to ports (if any), and norm-based business expenses, and notify them to the Ministry of Industry and Trade for application in the base price formula.

4. The Ministry of Finance shall guide methods of determining base price constituents.”

29. To amend Clause 2, Article 39 as follows:

“2. The Ministry of Industry and Trade shall publicize on its website global petrol and oil prices, base prices, and regulated prices of petrol and oil commodities; time of application and amounts set aside for and used from the Price Valorization Fund in periods of petrol and oil price regulation; and other measures (if any).

The Ministry of Finance and Ministry of Industry and Trade shall publicize on their websites the quarterly balance of the Price Valorization Fund.”

30. To amend Point dd of and add Point l to Clause 1; to amend Points a and b of Clause 2; to amend Point b of and add Point e to Clause 3, Article 40 as follows:

“1. The Ministry of Industry and Trade shall:

dd/ Assume the prime responsibility for, and coordinate with the Ministry of Finance in, regulating petrol and oil sale prices and the setting aside and use of the Price Valorization Fund; apply amounts to be set aside for and used from the Price Valorization Fund at the time of announcement of base prices after reaching agreement with the Ministry of Finance. In case of divergent opinions on such amounts, the Ministry of Industry and Trade shall decide on prices and take responsibility for its decision; when necessary, it shall report the case to the Prime Minister.

Assume the prime responsibility for, and coordinate with the Ministry of Finance in, inspecting and supervising petrol and oil key traders and petrol and oil distributors in their compliance with Article 38 of this Decree.”

“l/ Guide local authorities in deep-lying and remote areas in operating, and limiting petrol and oil storing capacity of, small-scale petrol and oil sale devices in accordance with current regulations.”

“2. The Ministry of Finance shall:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, inspecting and supervising petrol and oil key traders in the observance of Article 37 of this Decree.

b/ Guide methods of determining base price constituents; guide methods of setting aside, use and management of the Price Valorization Fund; size of the Price Valorization Fund; inspect and supervise petrol and oil key traders in the observance of regulations on the setting aside and use of the Price Valorization Fund.”

“3. The Ministry of Science and Technology shall:

b/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, formulating, revising and improving the system of standards and national technical regulations on petrol and oil measurement and quality for uniform application nationwide.

e/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, controlling measurement for types of small-scale petrol and oil sale devices.”

31. To add Clause 5a to Article 40 as follows:

“5a. The Ministry of Public Security shall assume the prime responsibility for, and coordinate with related agencies in, carrying out technical inspection and certification of conformity with regulations on fire prevention and fighting for petrol and oil sale devices.”

32. To amend Clause 6, Article 41 as follows:

“6. Based on the socio-economic conditions and petrol and oil trading situation in Region 3 in mountainous and highland areas under law, provincial-level People’s Committees may permit petrol and oil stations of the armed forces (national defense and public security forces) to act as petrol and oil retail agents or petrol and oil retail franchisees with sizes and devices suitable to petrol and oil trading conditions in such areas, while still satisfying other conditions specified in this Decree and other relevant legal documents.”

Article 2. Effect

1. This Decree takes effect on January 2, 2022.

2. To annul Clauses 6 and 18, Article 9; Clause 7, Article 15; Clause 7, Article 18; Article 36; and Point e, Clause 1, and Point c, Clause 2, Article 40, of Decree No. 83/2014/ND-CP.

Article 3. Transitional provisions

1. Petrol and oil traders that have obtained petrol and oil export/import licenses, certificates of eligibility for petrol and oil trading, or certificates of eligibility of petrol and oil retail stations may continue to operate in accordance with Decree No. 83/2014/ND-CP until the expiry dates of such licenses or certificates, or when there are changes in petrol and oil trading conditions.

2. For dossiers of application for or dossiers of request for re-grant of petrol and oil export/import licenses, certificates of eligibility for petrol and oil trading, or certificates of eligibility of petrol and oil retail stations that are complete and valid and submitted to competent agencies before the effective date of the Decree amending and supplementing Decree No. 83/2014/ND-CP, the conditions for petrol and oil trading specified in Decree No. 83/2014/ND-CP shall apply. Cases of submission of dossiers of application for other licenses or certificates must comply with the Decree amending and supplementing Decree No. 83/2014/ND-CP.

Article 4. Implementation responsibility and organization of implementation

1. The Ministry of Industry and Trade and Ministry of Finance shall coordinate with related ministries and sectors in guiding the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE VAN THANH