Official Dispatch No. 7294/BCT-TTTN dated July 20, 2015 of the Ministry of Industry and Trade on petroleum business management

THE MINISTRY OF INDUSTRY AND TRADE

Official Dispatch No.7294/BCT-TTTN dated July 20, 2015 of the Ministry of Industry and Trade on petroleum business management

To:Petroleum wholesale traders

Pursuant to the Government’s Decree No. 83/2014/ND-CP dated September 3, 2014 on petroleum business (hereinafter referred to as Decree No. 83/2014/ND-CP);

Pursuant to the Joint Circular No. 39/2014/TTLT-BCT-BTC of the Alliance between the Ministry of Industry and Trade and the Ministry of Finance dated October 29, 2014 on the method for calculating the basic price; the policy on establishing, managing and using the Price Stabilization Fund, and the price regulation under the provisions of the Decree No. 83/2014/ND-CP (hereinafter referred to as Circular No. 39/2014/TTLT-BCT-BTC);

Pursuant to the Prime Minister’s Decision No. 53/2012/QD-TTg dated November 22, 2012 on introducing the scheme for implementing the mixture of biofuel and traditional fuel;

Pursuant to Notification No. 19/TB-VPCP of the Government Office dated January 26, 2015 on disseminating the Prime Minister’s conclusion drawn at the meeting on the E5 petrol price;

Pursuant to the actual situation of the world petrol price quoted from July 5, 2015 to the end of July 19, 2015 (hereinafter referred to as the quoting period) and the principle of calculating the basic price under the provisions of the Decree No. 83/2014/ND-CP and the Joint Circular No. 39/2014/TTLT-BCT-BTC;

The Alliance between the Ministry of Industry and Trade and the Ministry of Finance hereby lists the basic price of common petrol products to be sold on the market as follows:

In order to respond to recent variations in the world petrol price and regulate the petrol price according to the market mechanism under the state management as well as contribute to reducing input costs paid by manufacturing and trading enterprises and give support for the people s lives, the Alliance between the Ministry of Industry and Trade and the Ministry of Finance hereby decides:

1. Petroleum price stabilization fund

- Maintain the current amount set aside for the petrol price stabilization price.

- Adjust the amount of the petrol price stabilization fund spent on all of petrol products as follows:

+ Mineral petrol: the price falls from 527 VND/l to 0 VND/l (stop spending the petrol price stabilization fund);

+ E5 petrol: the price falls from 362 VND/l to 0 VND/l (stop spending the petrol price stabilization fund).

2. Petroleum selling price

After setting aside and spending the petrol price stabilization fund as mentioned above in the section 1, the price of common petrol products to be sold on the market shall be restricted as follows:

- RON 92 petrol: not more than 20,120 VND/l;

- E5 petrol: not more than 19,625 VND/l;

- 0.05S Diesel oil: not more than 14,681 VND/l;

- Paraffin: not more than 13,750 VND/l;

- 180CST 3.5S Mazut: not more than 14,681 VND/l.

3. Implementation schedule

- Setting aside and spending the petrol price stabilization fund on petrol products shall take effect as from 3:00 pm July 20, 2015.

- Adjusting the selling price of petrol products shall be decided by petrol wholesale traders but shall be carried out not later than 3:00 pm July 20, 2015.

- From 3:00 pm July 20, 2015 on which the Alliance between the Ministry of Industry and Trade and the Ministry of Finance publicly lists the quoting-period basic price herein to the earlier time of the date on which the Alliance between the Ministry of Industry and Trade and the Ministry of Finance publicly lists the following-period basic price, the adjustment to the selling price of petrol products shall be decided by petrol wholesale traders in compliance with regulations laid down in the Decree No. 83/2014/ND-CP and the Joint Circular No. 39/2014/TTLT-BCT-BTC.

The Ministry of Industry and Trade hereby notifies petrol wholesale traders to implement and report on their implementation of regulations herein to the Alliance between the Ministry of Industry and Trade and the Ministry of Finance for supervision purposes./.

For the Minister

The Director of the Domestic Market Department

The Deputy Director

Nguyen Loc An

Summary of world petrol price updated within the past 15 days

(July 5, 2015 – July 19, 2015)

1^,2Calculated on the basis of the regulatory amount set aside for the petrol price stabilization fund, such as 300 VND/l for mineral petrol, 0 VND/l for E5 petrol, 300 VND/l for diesel oil, 300 VND/l for paraffin and 300 VND/kg for Mazut.