Circular No. 09/TN-TT on organizing the circulation of gasoline and diesel oil under the current circumstances pursuant to Directive No. 369/Cy of the Chairman of the Council of Ministers.

CIRCULAR

DECISION NO. 09-BTN/TT OF THE MINISTRY OF TRADE ON THE ORGANIZATION OF PETROLEUM DISTRIBUTION IN THE CURRENT SITUATION PURSUANT TO THE DIRECTIVE 369/CT OF THE CHAIRMAN OF THE STATE COUNCIL OF MINISTERS

To strictly implement Directive No. 338/CT dated September 21, 1990 and Directive No. 369/CT dated October 19, 1990 of the Chairman of the State Council of Ministers on "strengthening management and saving petroleum," the Ministry of Trade guides the relevant points concerning the business of petroleum on the domestic market as follows:

First, it is necessary to thoroughly understand the basic contents of the two directives above to guide the business of petroleum, ensuring that under the current difficult situation, active and urgent measures must be taken to find sources of petroleum to meet essential needs, while at the same time thoroughly saving petroleum consumption, considering this as a major policy of the Party and the State in the current situation.

The Petroleum General Corporation, the Central Oil Company, and the Provincial Departments of Trade have the responsibility to organize well the distribution of petroleum (including oil) from wholesale to retail stages, ensuring that petroleum is supplied directly to consumers, guaranteeing safety and minimal loss during the process of delivery, transportation, and storage.

In this spirit, it is necessary to rectify and reorganize the system of petroleum business, arrange the network of wholesale and retail petroleum sales, immediately eliminate the activities of organizations and individuals illegally trading in petroleum, disrupting the market, and not ensuring safety. Those who engage in speculation, smuggling, and theft of petroleum from the state must be severely punished.

1. Regarding the wholesale stage of petroleum.

Based on the targets allocated by the State Planning Committee for each sector and locality for the planned year, the Ministry of Trade will further specify these targets quarterly to organize the supply of petroleum according to the current method. Regional Petroleum Companies will directly supply petroleum to provinces, cities, and large consumers. Oil branches will directly deliver oil to district warehouses and city retail points.

It is necessary to adjust the wholesale price of petroleum. The basis for determining this price is the actual import price from the international market in strong foreign currencies, taxes required according to policy, and reasonable costs during circulation.

For the time being, the current discount rate will still be applied, but the Accounting and Finance Department, together with the Petroleum General Corporation and the Central Oil Company, will study and submit to the Ministry regulations on adjusting the discount rate to be consistent with the new price level.

The Petroleum Business Corporation needs to calculate and balance the import prices from various sources at different times to determine a reasonable wholesale price according to the principle mentioned above and report to the Ministry and the State Price Commission for approval of specific prices. Adjustments to bring the wholesale price up to the international level should be carried out promptly, but with appropriate steps to avoid disrupting production, living conditions, and sudden price fluctuations in the social market.

2. Regarding the organization of retail petroleum sales (including fuel oil).

a) Petroleum is a commodity subject to conditional trade managed uniformly by the State. Trading in petroleum requires specialized equipment and certain knowledge of commerce. Therefore, on one hand, it is necessary to expand the retail network of petroleum widely and conveniently; on the other hand, strict adherence to the conditions stipulated by the State for retail petroleum trade is required.

According to the current regulations, organizations and individuals wishing to sell petroleum retail must register and obtain a petroleum trade license. In addition to the general conditions already specified in Circular No. 02 dated April 8, 1989 and Notice No. 618 dated June 3, 1989 of the Ministry of Internal Trade (now the Ministry of Trade), they must also meet the following specific conditions:

- They must have specialized equipment meeting technical standards suitable for their scale of business and safety equipment.

- They must have a fixed place of business ensuring safe distances from residential areas, offices, schools, warehouses, etc., according to current regulations.

- They must have measuring equipment meeting prescribed standards. For units transporting petroleum, they must have specialized transport equipment.

- They must be equipped with complete fire prevention, explosion prevention, and firefighting facilities.

Regarding the entities eligible for a petroleum trade license, the following provisions apply:

- State-owned economic organizations are permitted to engage in both wholesale and retail petroleum trade.

- Collective economic organizations are only allowed to sell petroleum retail or act as agents for state-owned enterprises.

- A number of private households are allowed to act as agents for selling petroleum retail for state-owned enterprises.

- Foreign organizations and individuals organizing petroleum trade and opening petroleum agencies in the country, and some domestic organizations and individuals are allowed to import petroleum according to separate regulations.

The examination and issuance of petroleum trade licenses shall be carried out in accordance with current regulations.

The Petroleum General Corporation, the Central Oil Company, and the Provincial Departments of Trade need to urgently consolidate and expand the retail network of petroleum, review the existing retail network based on which consolidation and rectification can be made, eliminating unnecessary outlets and adding where needed, ensuring balance and rationality. Retail petroleum sales in cities, towns, and townships shall initially be handled by state-owned commercial stores and counters; in rural areas, they shall be handled by cooperative purchasing and sales organizations, allowing private individuals with the necessary qualifications to sell retail only where necessary.

For the Petroleum General Corporation and the Central Oil Company, which have retail stores and counters selling petroleum in provincial and municipal areas, they must consult with local authorities to plan the overall retail network in those areas, ensuring rationality and convenience, avoiding overlap, and unifying prices, sales methods, and compliance with local regulations on managing petroleum products, preventing any unwarranted violations.

Gradually invest in modernizing petroleum measuring equipment; in the short term, in central urban and town areas with high demand, additional "petrol stations" and "oil stations" should be built to replace manual measurement methods. Over time, all manual measurement methods at retail petroleum sales points belonging to state-owned commercial stores will be replaced by modern and accurate equipment.

b) It is necessary to expand the form of retail agency for gasoline and diesel fuel. Economic organizations under state ownership, collective, and private entities that meet the required conditions and have business licenses for gasoline and diesel fuel can be contracted by state-run enterprises dealing with gasoline and diesel fuel to act as retail agencies for selling gasoline and diesel fuel. The sale of gasoline through retail agencies to state-owned commercial entities must strictly comply with the established regulations on retail sales and must satisfy all conditions stipulated for retailing gasoline and diesel fuel (as specified in point a, clause 2 above).

c) Retail outlets, counters, and agencies selling gasoline and diesel fuel must strictly adhere to the following provisions:

- Selling at the correct retail price, without taking advantage of difficult situations to arbitrarily increase prices or divert gasoline and diesel fuel to private traders for profit.

- Selling directly to end consumers.

- During times of difficulty in supply, appropriate retail methods must be applied to limit speculative reselling and stockpiling which push prices up.

- Strictly implementing the regulations and internal rules for retail sales of gasoline and diesel fuel, ensuring fire prevention and firefighting regulations at retail counters.

Violations will result in temporary or permanent suspension of business operations; severe violations will be prosecuted under the law.

d) Retail Fund for Gasoline and Diesel Fuel.

Kerosene sold mainly to localities for retail sale to residents in areas without electricity for lighting purposes. Gasoline and other types of oils are primarily sold wholesale to households within allocated limits. Additionally, the State reserves a certain percentage for direct retail sales to consumers, mainly for the consumption needs of private cars and motorcycles. The General Corporation of Oil and Gas is responsible for managing and distributing this retail fund for gasoline and diesel fuel reasonably to localities and over time to ensure steady sales to consumers.

e) Retail Price of Gasoline and Diesel Fuel:

- The retail price of gasoline and diesel fuel is adjusted flexibly based on the wholesale price plus a reasonable markup accepted by the market and effective in regulating supply and demand relationships. The Ministry authorizes the General Director of the General Corporation of Oil and Gas to announce the retail price of gasoline and diesel fuel after it has been reviewed by the Ministry and the State Committee for Prices.

- The Oil Company submits to the Ministry the level of adjustment for the retail price of oil corresponding to the retail price of gasoline during each period. After consultation with relevant agencies, the Ministry will decide on the unified national retail price to be implemented.

3. Organizing well the sale of various fuels to residents.

To reduce the use of electricity and kerosene as fuel (which consumes foreign currency), it is necessary to organize well the sale of coal. Encouraging the people to use coal instead of electricity and kerosene is encouraged.

Local state-owned trading organizations assigned the task of supplying fuel for consumption needs should expand their network and organize well the sale of coal to the people. Researching the processing of various types of fuel such as honeycomb coal, betel nut shells... to ensure convenience and high heat efficiency, manufacturing various types of stoves using coal, ensuring ease of use, safety, and low cost to encourage people to purchase and use them.

Improving business practices, preventing losses and wastage during transportation and storage to make the retail price of coal cheaper than using electricity and kerosene.

4. Strengthening management of the gasoline and diesel fuel market.

Market management boards at all levels, Departments of Commerce, and Commercial Offices need to coordinate and strengthen management of the gasoline and diesel fuel market, organizing inspections and supervision of organizations and individuals engaging in illegal gasoline and diesel fuel business activities in any form. Checking the source of gasoline and diesel fuel supply, whether the business operators have valid permits, whether the business conditions meet the stipulated requirements, checking the implementation of retail prices and phenomena of speculation, stockpiling, and illegal gasoline and diesel fuel trade.

In the fourth quarter of 1990, organize crackdown campaigns to eliminate organizations and individuals engaged in illegal gasoline and diesel fuel trade (with separate plans, coordinated with the Market Management Board, Special Task Force, and the Ministry of Interior to implement).

Currently, theft of gasoline and diesel fuel is widespread and serious at transportation, storage stages, and pipeline tapping.

The Ministry assigns the Department of Administrative Management of Commerce, the General Corporation of Oil and Gas, and the Central Oil Company to develop plans and measures to prevent this situation, coordinating with the Ministry of Interior, the Ministry of Transport, and the Post Office, market management forces, organizing investigations, crackdowns, and strict handling of organizations and individuals stealing gasoline and diesel fuel and consuming stolen state fuel.

According to their assigned functions and responsibilities, the Ministry requests the General Directors of the General Corporation of Oil and Gas, the Central Oil Company, and the Directors of Commerce Departments of provinces, cities, and special zones to carefully study the two directives of the Council of Ministers' Chairman and the Circular guiding the Ministry to implement and report results to the Ministry.