Circular No. 103/2021/TT-BTC guiding the method of establishing, using, and managing the Fuel Price Stabilization Fund

CIRCULAR

Guidelines on the method of establishing, using, and managing the Fuel Price Stabilization Fund
Fuel Price Stabilization Fund

Pursuant to the Law on Prices No. 11/2012/QH13 dated June 20, 2012;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Government Decree No. 83/2014/NĐ-CP dated September 3, 2014 on fuel trade; and the Government Decree No. 95/2021/NĐ-CP dated November 1, 2021 amending and supplementing certain provisions of the Government Decree No. 83/2014/NĐ-CP dated September 3, 2014 on fuel trade;

The Minister of Finance issues this Circular guiding the method of establishing, using, and managing the Fuel Price Stabilization Fund.

Article 1. Scope of regulation and applicable subjects

1. This Circular guides the method of establishing, using, and managing the Fuel Price Stabilization Fund as prescribed in the Government Decree No. 95/2021/NĐ-CP dated November 1, 2021 amending and supplementing certain provisions of the Government Decree No. 83/2014/NĐ-CP dated September 3, 2014 on fuel trade (hereinafter referred to as the Government Decree No. 95/2021/NĐ-CP).

2. This Circular applies to competent state agencies responsible for regulating domestic fuel prices and other related agencies; and principal traders engaged in fuel trade as prescribed in the Government Decree No. 95/2021/NĐ-CP.

Article 2. Establishment, Management of the Fuel Price Stabilization Fund

1. The Fuel Price Stabilization Fund shall be established at enterprises when the Ministry of Industry and Trade issues a certificate confirming that they meet the conditions to become principal traders in fuel trade as prescribed in Article 1 of the Government Decree No. 95/2021/NĐ-CP. Principal traders in fuel trade shall be responsible for establishing, using, reporting, and publicly disclosing information about the Fuel Price Stabilization Fund and managing the Fund in accordance with the Government Decree No. 95/2021/NĐ-CP, this Circular, and any subsequent amendments or replacements thereof.

2. Principal traders in fuel trade shall be responsible for selecting and opening a separate account for the Fuel Price Stabilization Fund at commercial banks or branches of foreign banks operating legally in Vietnam (hereinafter collectively referred to as banks). They shall notify in writing the name, address, and contact information of the bank where the Fuel Price Stabilization Fund account is opened to the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department) and disclose such information in accordance with regulations.

Principal traders in fuel trade are the account holders and shall carry out procedures to open accounts; perform transactions related to the establishment and use of the Fuel Price Stabilization Fund account; ensure transparency and be subject to supervision by competent state agencies and society. In cases where the balance of the Fuel Price Stabilization Fund exceeds three hundred billion VND (300 billion VND), principal traders in fuel trade may open additional Fuel Price Stabilization Fund accounts at other banks.

3. The level of establishment and use of the Fuel Price Stabilization Fund shall be carried out according to the price adjustment notice issued by the Ministry of Industry and Trade and the guidelines set forth in this Circular. Principal traders in fuel trade shall be responsible for managing and using the Fuel Price Stabilization Fund for its intended purpose in accordance with the Government Decree No. 95/2021/NĐ-CP and this Circular; they shall not use the Fund for capital investment or other purposes.

Article 3. Principles of Operation of the Fuel Price Stabilization Fund

1. The Fuel Price Stabilization Fund is a financial fund not included in the state budget balance; all funds from the establishment and use of the Fuel Price Stabilization Fund shall be used to participate in price regulation and support the stabilization of domestic fuel prices in accordance with the price adjustment notices issued by the Ministry of Industry and Trade. The Fuel Price Stabilization Fund operates without profit-making objectives, does not generate centralized management mechanisms, and does not create organizational structures or independent financial mechanisms.

2. The establishment and use of the Fuel Price Stabilization Fund shall only be implemented once for each liter or kilogram of fuel sold by the first principal trader in fuel trade at actual consumption temperature in the domestic market during the period specified for the establishment and use of the Fuel Price Stabilization Fund.

Upon receiving the price adjustment notice from the Ministry of Industry and Trade regarding the level of establishment and use of the Fuel Price Stabilization Fund, the time frame for implementation, principal traders in fuel trade shall proactively establish and use the Fuel Price Stabilization Fund for the volume of fuel sold at actual consumption temperature in the domestic market as stipulated.

3. During the price adjustment period as prescribed in the Government Decree No. 95/2021/NĐ-CP, if the total balance of the Fuel Price Stabilization Fund of principal traders in fuel trade exceeds seven thousand billion VND (≥7,000 billion VND), the Ministry of Industry and Trade shall consider and adjust the level of establishment or temporarily suspend the establishment of the Fuel Price Stabilization Fund.

Article 4. Method of Establishing the Fuel Price Stabilization Fund

1. The Fuel Price Stabilization Fund shall be established by a specific amount of three hundred VND per liter (300 VND/liter) for gasoline and diesel oil types, and three hundred VND per kilogram (300 VND/kg) for heavy oil types at actual consumption temperature in the domestic market and shall be considered as a component of the base price and selling price of principal traders in fuel trade. The establishment of the Fuel Price Stabilization Fund shall be carried out simultaneously with the base price adjustment period.

2. The level of establishment of the Fuel Price Stabilization Fund as prescribed in Clause 1 of this Article shall be flexibly adjusted based on the actual situation at the time of fuel price adjustment as follows:

a) Reduce the level of establishment or temporarily suspend the establishment of the Fuel Price Stabilization Fund below the level prescribed in Clause 1 of Article 4 of this Circular when the components of the base price of gasoline and diesel oil increase by more than five percent (＞5%) compared to the previous published base price or when the increase in fuel prices affects economic and social development and people's livelihood.

If necessary, increase the level of establishment of the Fuel Price Stabilization Fund above the level prescribed in Clause 1 of Article 4 of this Circular when the components of the base price of gasoline and diesel oil decrease by more than five percent (＞5%) compared to the previous published base price or based on the balance of the Fuel Price Stabilization Fund and the actual situation at the time of publication of the base price of gasoline and diesel oil.

b) The Ministry of Industry and Trade shall base its decision on the balance of the Fuel Price Stabilization Fund, the actual situation at the time of fuel price management, the changes in the basic fuel prices, and the opinion of the Ministry of Finance to determine the level of contribution to the Fuel Price Stabilization Fund in accordance with market trends; In case the Ministry of Industry and Trade and the Ministry of Finance have different opinions, the Ministry of Industry and Trade shall make the decision for implementation.

3. The total amount of contributions to the Fuel Price Stabilization Fund during a period by the principal traders of oil products shall be determined by multiplying the level of contribution to the Fuel Price Stabilization Fund specified in the announcement of fuel price management by the Ministry of Industry and Trade with the actual volume of oil products sold domestically during that period by the principal traders of oil products.

Article 5. Methods of using the Fuel Price Stabilization Fund

1. The use of the Fuel Price Stabilization Fund shall be implemented when the basic fuel price is higher than the current retail price or when increasing fuel prices affect economic and social development and people's livelihood. Principal traders of oil products may only use the Fuel Price Stabilization Fund according to the announcement of fuel price management by the Ministry of Industry and Trade. The use of the Fuel Price Stabilization Fund shall be carried out simultaneously with the period of fuel price management as stipulated in Clause 27, Article 1 of Decree No. 95/2021/NĐ-CP.

2. The level of use of the Fuel Price Stabilization Fund shall be adjusted flexibly, in accordance with reality and the balance of the Fuel Price Stabilization Fund at the time of fuel price management as follows:

a) Not to use the Fuel Price Stabilization Fund in cases where the factors constituting the basic fuel price in the announced period increase by less than seven percent (7%) compared to the basic fuel price announced in the immediately preceding period, except in cases where the increase in fuel prices affects economic and social development and people's livelihood.

b) In cases where the factors constituting the basic fuel price in the announced period increase from seven percent (7%) to ten percent (10%) compared to the basic fuel price announced in the immediately preceding period, after reaching consensus with the Ministry of Finance, the Ministry of Industry and Trade shall decide the level of use of the Fuel Price Stabilization Fund in accordance with market trends; In case the Ministry of Industry and Trade and the Ministry of Finance have different opinions, the Ministry of Industry and Trade shall make the decision for implementation.

c) In cases where the factors constituting the basic fuel price in the announced period increase by more than ten percent (10%) compared to the basic fuel price announced in the immediately preceding period or where increasing fuel prices affect economic and social development and people's livelihood, the Ministry of Industry and Trade shall take the lead and coordinate with the Ministry of Finance to report to the Prime Minister for consideration and guidance.

3. The total amount of use of the Fuel Price Stabilization Fund during a period by the principal traders of oil products shall be determined by multiplying the level of use of the Fuel Price Stabilization Fund specified in the announcement of fuel price management by the Ministry of Industry and Trade with the actual volume of oil products sold domestically during that period by the principal traders of oil products.

Article 6. Accounting and Transfer of the Fuel Price Stabilization Fund

1. Principal traders of oil products shall be responsible for fully and accurately accounting for the contribution to the Fuel Price Stabilization Fund in the cost of goods sold; when using the Fuel Price Stabilization Fund, principal traders of oil products shall reduce the cost of goods sold.

2. Within five days (05 days) from the end of one (01) period of fuel price management by the Ministry of Industry and Trade, principal traders of oil products shall be responsible for accounting and offsetting the amount of contributions and uses (provisional calculation) of the Fuel Price Stabilization Fund in the immediately preceding period, and refunding (in cases where the Fuel Price Stabilization Fund at the principal trader of oil products is negative) or transferring immediately into the account of the Fuel Price Stabilization Fund (in cases where the Fuel Price Stabilization Fund at the principal trader of oil products is positive) of the principal trader of oil products.

3. The balance of the deposit account of the Fuel Price Stabilization Fund shall accrue interest at the rate applicable to the transaction deposit account of the bank where the principal trader of oil products has opened the Fuel Price Stabilization Fund deposit account during the same period. Any interest generated on the positive balance of the Fuel Price Stabilization Fund account at the bank shall be recorded as an increase in the Fuel Price Stabilization Fund account.

4. In cases where the principal trader of oil products uses the Fuel Price Stabilization Fund according to the announcement of the Ministry of Industry and Trade, but at that time the balance of the deposit account of the Fuel Price Stabilization Fund is zero (0), the principal trader of oil products may borrow or use legitimate financial sources to cover the excess use of the Fuel Price Stabilization Fund (negative balance of the Fuel Price Stabilization Fund); specifically as follows:

a) In cases where the principal trader of oil products borrows from a bank to cover the excess use of the Fuel Price Stabilization Fund, the interest rate shall be calculated based on the lowest agreed interest rate at the bank where the principal trader of oil products borrows funds.

Within five days (05 days) from the end of one (01) period of fuel price management by the Ministry of Industry and Trade, the principal trader of oil products shall be responsible for accounting and offsetting the amount of contributions and uses of the Fuel Price Stabilization Fund in the immediately preceding period. The start date for calculating the interest rate on the borrowed funds from the bank to cover the negative balance of the Fuel Price Stabilization Fund in the immediately preceding period shall be the date when the bank provides the capital for the principal trader of oil products to cover the excess use of the Fuel Price Stabilization Fund (negative balance of the Fuel Price Stabilization Fund).

b) In cases where the principal trader of oil products uses legitimate financial sources to cover the excess use of the Fuel Price Stabilization Fund, the interest rate shall be calculated at the maximum rate equal to the lowest interest rate applied to the transaction deposit account of one (01) of the banks where the principal trader of oil products has opened the Fuel Price Stabilization Fund deposit account.

Within five days (05 days) from the end of one (01) period of price management for gasoline and diesel oil by the Ministry of Industry and Trade, the principal traders of gasoline and diesel oil shall be responsible for accounting and offsetting the amount of money that has been established and used from the Petroleum Stabilization Fund in the immediately preceding period. The interest calculation date for the amount of money that principal traders of gasoline and diesel oil use from legitimate financial sources to cover the excess expenditure over the Petroleum Stabilization Fund (the negative balance of the Petroleum Stabilization Fund) is determined from the date when principal traders of gasoline and diesel oil account and transfer the Petroleum Stabilization Fund in the immediately preceding period.

c) The amount of money that principal traders of gasoline and diesel oil borrow from banks or use from legitimate financial sources to cover the excess expenditure over the Petroleum Stabilization Fund (the negative balance of the Petroleum Stabilization Fund) will be refunded when the Petroleum Stabilization Fund has a positive balance, according to the principle that the financial resources raised to cover the excess expenditure over the Petroleum Stabilization Fund in the previous period will be refunded first.

5. The final balance of the Petroleum Stabilization Fund for the period equals (=) the opening balance of the Petroleum Stabilization Fund plus (+) the total amount established for the Petroleum Stabilization Fund during the period minus (-) the total amount spent from the Petroleum Stabilization Fund during the period plus (+) the interest calculated on the positive balance of the Petroleum Stabilization Fund generated during the period minus (-) the interest calculated on the negative balance of the Petroleum Stabilization Fund generated during the period (if any).

Before January 20 of the next fiscal year, principal traders of gasoline and diesel oil shall be responsible for compiling and reporting to the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department): the opening balance of the Petroleum Stabilization Fund reported; Total volume and types of gasoline and diesel oil subject to establishment and expenditure during the reporting period; Total amount established for the Petroleum Stabilization Fund during the reporting period; Total amount spent from the Petroleum Stabilization Fund during the reporting period; Interest generated on the positive or negative balance of the Petroleum Stabilization Fund during the reporting period; Final balance of the Petroleum Stabilization Fund reported; If the Petroleum Stabilization Fund has a surplus, principal traders of gasoline and diesel oil shall carry forward it to the following year.

6. Principal traders of gasoline and diesel oil shall be responsible for accounting, preparing, and presenting financial statements in accordance with the Accounting Law No. 88/2015/QH13 dated November 20, 2015, and guiding documents of the Accounting Law. Annual financial statements of the Petroleum Stabilization Fund shall be submitted to the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department) within ninety days (90 days) from the end of the annual accounting period for monitoring and supervision.

7. In case enterprises cease operations as principal traders of gasoline and diesel oil, they are obligated to transfer and pay the entire balance of the Petroleum Stabilization Fund to the state budget in accordance with Clause 8, Article 1 of Decree No. 95/2021/NĐ-CP, specifically as follows:

a) In case of bankruptcy or dissolution of the enterprise: Prior to implementing bankruptcy or dissolution procedures, principal traders of gasoline and diesel oil shall be responsible for settling the Petroleum Stabilization Fund and submitting reports to the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department); At the same time, transferring and paying the entire amount of the Petroleum Stabilization Fund at the enterprise to the state budget and sending copies of the payment transfer documents to the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department).

b) In case principal traders of gasoline and diesel oil have their Certificate of Eligibility for Principal Traders of Gasoline and Diesel Oil revoked, upon receipt of the decision or notification from the Ministry of Industry and Trade, principal traders of gasoline and diesel oil shall be responsible for transferring and paying the entire amount of the Petroleum Stabilization Fund to the state budget and sending copies of the payment transfer documents to the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department).

c) In case the Certificate of Eligibility for Principal Traders of Gasoline and Diesel Oil expires and needs to be renewed in accordance with Decree No. 95/2021/NĐ-CP, at least thirty (30) working days before the certificate expires, principal traders of gasoline and diesel oil shall be responsible for closing the balance of the Petroleum Stabilization Fund and submitting reports along with bank statements of the Petroleum Stabilization Fund to the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department).

Upon receiving the decision or notification from the Ministry of Industry and Trade regarding the cessation of operations as principal traders of gasoline and diesel oil, principal traders of gasoline and diesel oil shall be responsible for immediately transferring and paying the entire amount of the Petroleum Stabilization Fund to the state budget and sending copies of the payment transfer documents to the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department).

Principal traders of gasoline and diesel oil shall be responsible for transferring and paying the entire amount of the Petroleum Stabilization Fund to the state budget through one of the following methods: Directly depositing at a commercial bank via a transfer to the State Treasury account opened at the commercial bank; or depositing through electronic payment services provided by the bank. Regarding the accounting entry for central government revenue:

Under the chapter of the managing unit of the enterprise,

Regarding the content of the payment: Sub-item 4949 - "Other revenues" under item 4900 - "Other revenues".

Based on the reports of principal traders of gasoline and diesel oil and audit reports on the Petroleum Stabilization Fund (if any), the Joint Ministry of Industry and Trade - Finance shall review and reconcile the actual balance of the Petroleum Stabilization Fund at the enterprise with the reported balance of the Petroleum Stabilization Fund transferred and paid into the central budget by principal traders of gasoline and diesel oil, requesting adjustments if there are discrepancies in the figures. Principal traders of gasoline and diesel oil shall bear full responsibility under the law for the implementation of establishing, spending, reporting, and managing the Petroleum Stabilization Fund.

8. In the case of merger, consolidation, acquisition, joint venture, division, or separation of enterprises, the balance of the Fuel Price Stabilization Fund will be transferred to the balance of the principal trader of gasoline and diesel oil that receives the merger (in the case of enterprise merger), the acquiring enterprise (in the case of enterprise acquisition), and the new enterprise (in the case of consolidation, joint venture, division, or separation of enterprises). Based on the audit report on the Fuel Price Stabilization Fund at the principal trader of gasoline and diesel oil, the Ministry of Industry and Trade and the Ministry of Finance will review, report to the competent authority for consideration and handling each specific case in accordance with the provisions of the law.

Article 7. Publicizing and Reporting on the Fuel Price Stabilization Fund

1. The principal trader of gasoline and diesel oil shall be responsible for publicly announcing on the company's website or through mass media the balance of the Fuel Price Stabilization Fund (estimated amount) before each time the principal trader adjusts the domestic selling price of gasoline and diesel oil according to the Ministry of Industry and Trade's announcement on price management; At the same time, publicly announce the situation of establishing, using, and interest generated from the balance of the Fuel Price Stabilization Fund account and the previous month's balance of the Fuel Price Stabilization Fund (before the 15th of each month).

2. On a regular basis, before the 15th of each month, the principal trader of gasoline and diesel oil shall be responsible for preparing and submitting a report to the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department) on the implementation of the Fuel Price Stabilization Fund of the previous month, including: the opening balance of the Fuel Price Stabilization Fund in the reporting period; Total volume and types of gasoline and diesel oil established and used during the reporting period; Total amount of the Fuel Price Stabilization Fund established during the reporting period; Total amount of the Fuel Price Stabilization Fund used during the reporting period; Interest generated from the positive or negative balance of the Fuel Price Stabilization Fund during the reporting period; Closing balance of the Fuel Price Stabilization Fund in the reporting period; At the same time, submit a copy of the account statement of the Fuel Price Stabilization Fund during the reporting period. The principal trader of gasoline and diesel oil shall bear full responsibility for the accuracy of the reported data and information.

The submission of reports shall be carried out through one of the following methods: Submitting directly at the office of the receiving agency; Sending via postal service; Sending via fax or email (scanned version) to the address:

The email address for receiving reports from the Ministry of Finance (Price Management Department) is: [email protected];

The email address for receiving reports from the Ministry of Industry and Trade (Domestic Market Department) is: [email protected];

Based on the information reported by the principal trader of gasoline and diesel oil, quarterly, the Ministry of Finance and the Ministry of Industry and Trade will compile and publish on their respective websites the amounts established, used, interest generated, and the balance of the Fuel Price Stabilization Fund of the principal trader of gasoline and diesel oil.

Article 8. Inspection and Supervision of the Establishment and Usage of the Fuel Price Stabilization Fund

1. The method of inspection and supervision of the establishment and usage of the Fuel Price Stabilization Fund is carried out through periodic or ad hoc reports from the principal trader of gasoline and diesel oil; or through direct meetings and exchanges with the unit. In cases where verification of data is required, the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department) may request the principal trader of gasoline and diesel oil to provide supplementary reports. In necessary cases according to state management requirements or annual information collection plans, the Ministry of Finance (Price Management Department) will coordinate with the Ministry of Industry and Trade (Domestic Market Department) to organize direct work, exchange, and inspection at the unit.

2. The results of inspections and supervision will be communicated to the principal trader of gasoline and diesel oil to update and adjust the data promptly. Any difficulties or obstacles arising during the implementation of the establishment and usage of the Fuel Price Stabilization Fund will be studied, considered, and resolved to facilitate the principal trader of gasoline and diesel oil in its implementation; In cases where it is found that the principal trader of gasoline and diesel oil does not comply with or improperly implements the regulations, they will be handled in accordance with the provisions of Decree No. 95/2021/NĐ-CP.

Article 9. Implementation Organization and Effectiveness

1. This Circular takes effect from January 2, 2022.

Abolish Article 6, Article 7, Article 8, and Article 9 of the Joint Circular No. 39/2014/TTLT-BCT-BTC dated October 29, 2014, issued by the Ministry of Industry and Trade and the Ministry of Finance regarding the method of calculating the base price; mechanism for forming, managing, and using the Fuel Price Stabilization Fund and price management of gasoline and diesel oil under Decree No. 83/2014/NĐ-CP dated September 3, 2014, issued by the Government on trading in gasoline and diesel oil; Clause 4 of Article 1 of the Joint Circular No. 90/2016/TTLT-BTC-BCT dated June 24, 2016, issued by the Ministry of Finance and the Ministry of Industry and Trade amending and supplementing some articles of the Joint Circular No. 39/2014/TTLT-BCT-BTC dated October 29, 2014, issued by the Ministry of Industry and Trade and the Ministry of Finance regarding the method of calculating the base price, mechanism for forming, managing, and using the Fuel Price Stabilization Fund and price management of gasoline and diesel oil under Decree No. 83/2014/NĐ-CP dated September 3, 2014, issued by the Government on trading in gasoline and diesel oil and other previous regulations that contradict the provisions of this Circular.

2. Entrust the Price Management Department (Ministry of Finance) to take the lead in coordinating with relevant units to guide, implement, and inspect the implementation of this Circular in accordance with the regulations.

3. Principal traders of gasoline and diesel oil shall be responsible for implementing and compiling actual data at their units, publicizing and reporting to the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department) in accordance with the provisions of this Circular.

During the implementation process, if there are any difficulties or obstacles, please promptly reflect them to the Ministry of Finance (Price Management Department) for study, amendment, and supplementation to ensure compliance./.