Joint Circular No. 39/2014/TTLT-BCT-BTC stipulates the method for calculating the base price; the mechanism for forming, managing, and using the Price Stabilization Fund and regulating gasoline prices as prescribed in Government Decree No. 83/2014/NĐ-CP dated September 3, 2014 on gasoline trading.

JOINT CIRCULAR

Regulations on the method for calculating base price; mechanism for forming, managing, and using the Price Stabilization Fund and managing gasoline prices in accordance with Government Decree No. 83/2014/ND-CPdated September 3, 2014 on gasoline businessngày 03 tháng 9 năm 2014 của Chính phủ về kinh doanh xăng dầu

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Pursuant to the Government Decree No. 81/2018/NĐ-CP dated May 22, 2018, detailing the Trade Law on trade promotion activities;

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

Pursuant to the Accounting Law No. 03/2003/QH11 dated June 17, 2003;

Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

- Sending via fax or email to the address [email protected] (scanned copy)."

Pursuant to Government Decree No. 177/2013/ND-CP dated November 14, 2013 detailing and guiding the implementation of certain provisions of the Law on Prices;

Pursuant to Government Decree No. 129/2004/ND-CP dated May 31, 2004 detailing and guiding the implementation of certain provisions of the Accounting Law in business activities;

The Minister of Industry and Trade and the Minister of Finance issue this Joint Circular stipulating the method for calculating base price; mechanism for forming, managing, and using the Price Stabilization Fund and managing gasoline prices in accordance with Government Decree No. 83/2014/ND-CP dated September 3, 2014 on gasoline business:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the method for calculating base price; mechanism for forming, managing, and using the Price Stabilization Fund and managing gasoline prices; inspection and supervision of the implementation of business costs, fixed profit margins for calculating base price, and the implementation of establishing and using the Price Stabilization Fund for gasoline.

Article 2. Applicability

Article 1. This Circular applies to principal traders in gasoline and diesel fuel, distributors of gasoline and diesel fuel as defined by Government Decree No. 83/2014/ND-CP dated September 3, 2014 on gasoline business and related legal documents.

Article 2. This Circular does not apply to: traders importing, producing, and blending special types of gasoline and diesel fuel for their own specific needs without selling them on the market; traders permitted to import gasoline and diesel fuel into the country under the Investment Law for advertising samples, trade fairs, or aid donations; traders producing gasoline and diesel fuel for sale to importers; principal traders purchasing finished petroleum products from other principal traders for domestic supply; principal traders purchasing finished petroleum products for use as raw materials in production and blending of other finished petroleum products.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

2. World Petroleum Prices used as the basis for calculating CIF in the base price are actual transaction prices of finished petroleum products traded on the Singapore market and based on the daily average transaction price (MOP's: Mean of Platt's Singapore) published by the Platt's news agency (hereinafter referred to as the Platt's Singapore price).

3. Retail Petroleum Prices are prices at retail petroleum outlets.

4. Base Price of commonly consumed petroleum products on the market serves as the basis for state management agencies to manage domestic retail petroleum prices.

Chapter II

METHOD FOR CALCULATING BASE PRICE

- The CIF price is calculated as the world price of petroleum products (Platts Singapore price) plus expenses to bring petroleum products from abroad to Vietnamese ports. These factors are determined at actual temperatures. The world price of petroleum products is the average of the 15 days closest to the pricing day of the mandatory fuel reserve cycle as stipulated in Clause 1, Article 31 of Decree No. 83/2014/NĐ-CP.

Expenses to bring petroleum products from abroad to Vietnamese ports include: premium, insurance fee, transportation cost to Vietnamese ports, and reasonable and legitimate importation-related costs (if any). Among these, the insurance fee and transportation cost to Vietnamese ports are based on the advanced average level actually incurred by key traders.

- The foreign exchange rate for calculating the CIF price is the selling foreign exchange rate at the end of the day of Vietnam Joint Stock Commercial Bank for Foreign Trade, averaged over the 15 days closest to the pricing day of the mandatory fuel reserve cycle as stipulated in Clause 1, Article 31 of Decree No. 83/2014/NĐ-CP.

- The foreign exchange rate for calculating import tax and special consumption tax for determining the base price is the foreign exchange rate as prescribed by tax laws, averaged over the 15 days closest to the pricing day of the mandatory fuel reserve cycle as stipulated in Clause 1, Article 31 of Decree No. 83/2014/NĐ-CP.

- Import tax, special consumption tax, value-added tax, environmental protection tax; other taxes, fees, and other contributions as prescribed by law.

Based on reports from key traders, the Ministry of Finance (Price Management Department) shall take the lead and coordinate with the Ministry of Industry and Trade (Domestic Market Department) to compile, evaluate, inspect, and survey (if necessary) to make appropriate adjustments.

Article 5. Standard Business Costs and Standard Profit for Determining Base Price

1. Standard Business Costs:

- Average standard business costs for gasoline types: 1,050 VND/liter;

- Average standard business costs for diesel oil and kerosene types: 950 VND/liter;

- Average standard business costs for bitumen types: 600 VND/kg.

Gasoline types and diesel oil and kerosene types include wholesale and retail costs, while bitumen types only include wholesale costs.

For areas far from ports, key distribution centers, or fuel production facilities where reasonable and legitimate business costs (verified by state audit or independent audit) exceed the above regulations, key traders must balance, consider, and decide on their own responsibility for business results, and may set actual sales prices in those areas to cover reasonable and legitimate business costs, but the sales price cannot exceed 2% of the announced base price at the same time.

In case of necessity, the Ministry of Finance (Price Management Department) and the Ministry of Industry and Trade (Domestic Market Department) may request key traders to submit ad hoc reports.

Based on reports from key traders, the Ministry of Finance (Price Management Department) shall take the lead and coordinate with the Ministry of Industry and Trade (Domestic Market Department) to compile, evaluate, inspect, and survey (if necessary) to make appropriate adjustments.

2. Standard profit is the domestic profit from petroleum product trading of key traders to determine the base price at a maximum of 300 VND/liter/kg at actual temperature, which will be announced in writing by the Ministry of Finance to adjust appropriately to the business realities of key traders during each period. Actual profit depends on the business results of key traders.

Chapter III

STABILIZATION FUND FOR PETROLEUM PRODUCTS

Article 6. Mechanism for Establishing the Fuel Price Stabilization Fund

The Fuel Price Stabilization Fund shall be accounted for and monitored separately through a specific account at a commercial bank legally operating in Vietnam where the primary trader conducts transactions. The primary trader is the account holder, responsible for procedures related to opening the account, establishing the fund, and performing deposit and withdrawal operations from the Fuel Price Stabilization Fund account; simultaneously, they must inform the Ministry of Finance (Price Management Department), the Ministry of Industry and Trade (Domestic Market Department) of the name, address, and contact information of the commercial bank where the Fuel Price Stabilization Fund account is opened, in accordance with Clause 3, Article 39 of Decree No. 83/2014/ND-CP.

2. The Fuel Price Stabilization Fund shall be established regularly and continuously by a specific, fixed amount of 300 dong per liter at actual temperature for gasoline and diesel oil, and 300 dong per kilogram for actual consumption of residual oil, as stipulated in Clause 9, Article 3 of Decree No. 83/2014/ND-CP.

In necessary cases, the Joint Ministries of Industry and Trade - Finance will adjust the level of establishment and timing of the Fuel Price Stabilization Fund to suit market fluctuations and notify in writing for primary traders to implement.

3. The Joint Ministries of Industry and Trade - Finance will announce the time to adjust the level of establishment of the Fuel Price Stabilization Fund for primary traders to implement in the following cases:

a) Adjust the level of establishment of the Fuel Price Stabilization Fund below the level prescribed in Clause 2 of this Article when factors causing fluctuations result in the base price increasing by more than seven percent (07%) compared to the previous base price or when increases in fuel prices adversely affect economic development, social progress, and people's livelihoods;

b) When factors causing fluctuations result in the base price decreasing compared to the price before it was adjusted downward as specified in point a of this Clause, the Joint Ministries of Industry and Trade - Finance will announce the time and level of establishment of the Fuel Price Stabilization Fund.

4. The total level of establishment of the Fuel Price Stabilization Fund is determined by multiplying the level of establishment prescribed in Clauses 2 and 3 of this Article by the actual volume of gasoline and diesel consumed in the domestic market during the period of establishing the Fuel Price Stabilization Fund.

The end-of-period balance of the Fuel Price Stabilization Fund equals the beginning-of-period balance plus the total level of establishment of the Fuel Price Stabilization Fund during the period minus the total level of usage of the Fuel Price Stabilization Fund during the period plus interest on positive balances generated during the period minus interest on negative balances generated during the period.

Article 7. Mechanism for Using the Fuel Price Stabilization Fund

1. Entities eligible to use the Fuel Price Stabilization Fund

a) Primary traders who have established the Fuel Price Stabilization Fund in accordance with regulations may use the Fund to achieve the goal of stabilizing the market and stabilizing fuel prices as regulated by the Joint Ministries of Industry and Trade - Finance;

b) Primary traders who are no longer primary fuel traders under legal regulations:

- In cases of merger, consolidation, acquisition, joint venture, division, or split of enterprises: the remaining balance of the Fuel Price Stabilization Fund will be transferred to the balance of the primary trader enterprise receiving the merger (in the case of merging enterprises), the acquiring enterprise (in the case of acquiring enterprises), and the new enterprise (in the case of consolidation, joint venture, division, or split of enterprises) in accordance with legal regulations (including both positive and negative balances of the Fuel Price Stabilization Fund). The Joint Ministries of Industry and Trade - Finance will review and report the results of handling each specific case.

- In cases where the primary trader goes bankrupt, is dissolved, has their business license revoked for export and import of fuel, or voluntarily registers not to continue as a primary trader for export and import of fuel:

+ If there is a remaining balance of the Fuel Price Stabilization Fund, it must be paid into the State Budget;

+ If the Fuel Price Stabilization Fund is negative due to its use to stabilize the market and stabilize fuel prices before ceasing to be a primary trader, the Joint Ministries of Industry and Trade - Finance will review, report to the competent authority for consideration, and take measures to handle each specific case, while also announcing the results of handling each specific case.

2. Methods of using the Fuel Price Stabilization Fund

a) Strictly prohibit the use of the Fuel Price Stabilization Fund for capital investment in business or other purposes outside the provisions of Clause 1 of Article 6 of this Circular;

b) The Fuel Price Stabilization Fund can be used in the following cases:

- When factors causing fluctuations result in the base price announced in the current period increasing within three percent (≤ 03%) compared to the previous base price, but the increase affects economic and social conditions and people's livelihoods, the Joint Ministries of Industry and Trade - Finance will consider using the Fuel Price Stabilization Fund to manage fuel prices;

- When factors causing fluctuations result in the base price increasing beyond three percent (> 03%) up to four percent (≤ 04%) compared to the previous base price, the primary trader has the right to adjust the selling price within three percent (≤ 03%) and can use the Fuel Price Stabilization Fund for the portion exceeding three percent (> 03%) up to four percent (≤ 04%). The primary trader must submit a price declaration document and proposed price adjustment level to the Joint Ministries of Industry and Trade - Finance.

- In cases where the factors constituting fluctuations cause the base price to increase by more than four percent (＞ 04%) up to seven percent (≤ 07%) compared to the nearest preceding base price, the principal traders are entitled to adjust the selling price upward within a range of up to three percent (≤ 03%) plus (+) fifty percent (50%) of the price difference calculated from the ratio of the base price increasing by more than three percent (＞ 03%) to the actual increase ratio within the range of increase from three percent (＞ 03%) to seven percent (≤ 07%). The remaining fifty percent (50%) will be compensated from the Price Stabilization Fund. Principal traders submit the price declaration document, proposing the price adjustment level to the Ministry of Industry and Trade - Ministry of Finance;

c) Utilize the Price Stabilization Fund in accordance with the provisions at point b Clause of this Article, suitable for the time interval between two (02) price adjustments;

d) In cases where the factors constituting fluctuations cause the base price to increase by more than seven percent (＞ 07%) compared to the nearest preceding base price, or where the increase in gasoline prices has adverse effects on economic development, social progress, and people's livelihoods, the Ministry of Industry and Trade shall take the lead in coordinating with the Ministry of Finance to report;

3. Principal traders cease using the Price Stabilization Fund upon receiving a written notification from the Ministry of Industry and Trade - Ministry of Finance;

4. Procedures and sequence for utilizing the Price Stabilization Fund;

a) Based on the price adjustment declarations of principal traders in compliance with legal regulations concerning the basis, principles, methods, and procedures for calculating gasoline and diesel prices, the Inter-Ministerial Price Management Team reviews and proposes management solutions, including the use, non-use, cessation, or adjustment of the usage rate (ratio) of the Price Stabilization Fund for the Ministry of Industry and Trade - Ministry of Finance to decide;

b) In cases where the factors constituting fluctuations cause the announced base price period to increase within a range of up to three percent (≤ 03%) compared to the nearest preceding base price, but the price increase affects the economic and social situation and people's livelihoods, the Ministry of Industry and Trade - Ministry of Finance announces the use of the Price Stabilization Fund simultaneously with the announcement of the base price;

c) In cases where the factors constituting fluctuations cause the announced base price period to increase by more than three percent (＞ 03%) up to seven percent (≤ 07%) compared to the nearest preceding base price, within three (03) working days from the date of receipt of the price declaration document, the Ministry of Industry and Trade - Ministry of Finance must issue a written response to the principal trader regarding the price adjustment and announce in writing the use of the Price Stabilization Fund (if applicable) for the principal traders to implement;

Beyond the three (03) working day period from the date of receipt of the price declaration document, if the Ministry of Industry and Trade - Ministry of Finance does not issue a written response regarding the principal trader's price adjustment or does not issue a related announcement concerning the use of the Price Stabilization Fund, the principal trader is entitled to adjust the retail price (for aviation kerosene, the wholesale price) but not higher than the announced base price period and not exceeding seven percent (＞ 07%) compared to the nearest preceding base price;

d) Upon receiving a notification from the Ministry of Industry and Trade - Ministry of Finance regarding the timing and amount of the Price Stabilization Fund usage, principal traders proactively deduct from their account in the Price Stabilization Fund and carry out accounting and settlement in accordance with Article 8 of this Circular.

Article 8. Accounting and Settlement of the Price Stabilization Fund

1. The main traders shall be responsible for fully and accurately accounting for the amount set aside for the Price Stabilization Fund in the cost of goods sold.

2. The Price Stabilization Fund shall be used in accordance with the provisions of Article 7 of this Circular; when using the fund, the main trader shall account for a reduction in the cost of goods sold.

3. The balance in the deposit account of the Price Stabilization Fund shall accrue interest at the rate applicable to the current account of commercial banks where the main trader opens the Price Stabilization Fund deposit account during the same period. Any interest generated on the positive balance of the Price Stabilization Fund deposit account at the commercial bank shall be recorded as an increase in the Price Stabilization Fund account. Management and operation of the Price Stabilization Fund deposit account, as well as accounting and monitoring of related transactions, must be transparent and publicized.

4. In cases where the main trader uses the Price Stabilization Fund according to the notification of the Ministry of Industry and Trade - Ministry of Finance but at that time, the balance in the deposit account of the Price Stabilization Fund is zero, the main trader may borrow funds to make up for it and shall be charged interest at the maximum rate applicable to the current account of the commercial bank where the main trader opens the Price Stabilization Fund deposit account for the amount exceeding the Price Stabilization Fund (the negative balance of the Price Stabilization Fund). Any interest generated when the Price Stabilization Fund is in deficit (the amount the main trader has to borrow to supplement the deficit of the Price Stabilization Fund) shall be recorded as a decrease in the Price Stabilization Fund account. Repayment shall be made monthly when the Price Stabilization Fund has a positive balance and settled at the end of the fiscal year.

5. At the end of the fiscal year, if there is a surplus in the Price Stabilization Fund, the main trader is permitted to carry it over to the next year.

6. Accounting, reporting, transparency, and disclosure of information about the Price Stabilization Fund:

a) For main traders

On the 25th day of each month:

- Main traders must disclose the beginning balance, the amount set aside for the Price Stabilization Fund, the amount used from the Price Stabilization Fund, and the ending balance of the Price Stabilization Fund of the previous month. Simultaneously, they must transfer the entire amount set aside for the Price Stabilization Fund of the previous month into the deposit account of the fuel Price Stabilization Fund at the commercial bank where the main trader maintains the Price Stabilization Fund account;

- At the same time, main traders will be reimbursed for the amount used from the Price Stabilization Fund of the previous month according to the notification of the Ministry of Industry and Trade - Ministry of Finance (if applicable);

- Main traders are responsible for submitting reports to the Ministry of Industry and Trade (Domestic Market Department) and the Ministry of Finance (Price Management Department) containing accurate and complete information about the Price Stabilization Fund, specifically:

+ The beginning balance of the Price Stabilization Fund reported (if applicable);

+ The amount set aside for the Price Stabilization Fund during the reporting period (if applicable);

+ The amount used from the Price Stabilization Fund during the reporting period (if applicable);

+ Interest generated on the positive balance of the Price Stabilization Fund or interest generated due to a deficit in the Price Stabilization Fund (if applicable);

+ The ending balance of the Price Stabilization Fund.

In cases where the 25th day of the month falls on a holiday or public holiday, main traders must perform the set-aside and transfer operations on the first working day following the 25th;

b) For commercial banks where main traders open the Price Stabilization Fund deposit account

- On the first day (01) of each month, commercial banks where main traders maintain the Price Stabilization Fund deposit account must send statements regarding transactions related to the Price Stabilization Fund deposit account of the main trader in the previous month to the Ministry of Industry and Trade (Domestic Market Department) and the Ministry of Finance (Price Management Department). The statement shall include:

+ The beginning balance of the Price Stabilization Fund reported (if applicable);

+ The amount set aside for the Price Stabilization Fund during the reporting period (if applicable);

+ The amount used from the Price Stabilization Fund during the reporting period (if applicable);

+ Interest generated on the positive balance of the Price Stabilization Fund or interest generated due to a deficit in the Price Stabilization Fund (if applicable);

+ The balance of the Price Stabilization Fund during the reporting period.

- In cases where the first day (01) of the month falls on a holiday or public holiday, commercial banks where main traders maintain the Price Stabilization Fund deposit account must send statements regarding transactions related to the Price Stabilization Fund deposit account of the main trader on the first working day following the first day (01);

If necessary, the Ministry of Industry and Trade - Ministry of Finance may request main traders and commercial banks where main traders maintain the Price Stabilization Fund deposit account to submit ad hoc reports.

Article 9. Accounting methods and financial statement presentation for the Price Stabilization Fund

1. Supplement Account 357 - Price Stabilization Fund Account 357 shall be detailed at level 2:

a) Account 3571 - Price Stabilization Fund

Content of the Account: Account 3571 is used to reflect the current amount, changes in the Price Stabilization Fund of the main traders. The accounting entries and accounting method for this account shall be carried out according to the following principles:

Structure and content reflected in Account 3571 - Price Stabilization Fund:

Debit Side - Decrease in the Price Stabilization Fund due to usage as prescribed by the State's current regulations.

Credit Side - Increase in the Price Stabilization Fund due to allocation as prescribed by the State's current regulations.

Credit Balance - The amount of the Price Stabilization Fund remaining at the reporting date.

Debit Balance - The amount of the Price Stabilization Fund that has been overdrawn but not yet replenished at the reporting date.

b) Account 3572 - Interest arising from the balance of the Price Stabilization Fund

Content of the Account: Account 3572 is used to reflect the total interest amount currently held, changes in interest on the Price Stabilization Fund of the main traders. The accounting for this account shall be carried out according to the following principles:

Structure and content reflected in Account 3572 - Interest arising from the balance of the Price Stabilization Fund:

Debit Side - Loan interest payable when the Price Stabilization Fund is negative, calculated by the main trader according to Clause 4, Article 8.

Credit Side - Interest received when the Price Stabilization Fund is positive, paid by the Commercial Bank according to Clause 4, Article 8.

Credit Balance - The amount of interest on the Price Stabilization Fund remaining at the reporting date.

Debit Balance - The amount of loan interest still outstanding due to the Price Stabilization Fund being negative at the reporting date.

2. Main traders must open a separate deposit account for the Price Stabilization Fund at a Commercial Bank to monitor the flow of funds allocated and utilized for the Price Stabilization Fund and interest generated when the Price Stabilization Fund is positive or negative.

3. Accounting methods for allocating and utilizing the Price Stabilization Fund

a) Monthly, based on the allocation table of the Price Stabilization Fund, the main trader records:

Debit Account 632 - Cost of Goods Sold: The amount required to allocate to the Price Stabilization Fund in the month as prescribed

Credit Account 3571 - Price Stabilization Fund

Simultaneously, on the 25th of each month, based on the allocation table of the Price Stabilization Fund of the previous month, the main trader issues a payment order to transfer funds from the settlement deposit account to the Price Stabilization Fund deposit account, recording:

Debit Account 1121 - Bank Deposits - Detailed Price Stabilization Fund Deposit

Credit Account 1121 - Bank Deposits - Detailed Settlement Deposit

b) Monthly, based on the utilization calculation table of the Fuel Price Stabilization Fund reported by the Ministry of Industry and Trade - Ministry of Finance, the main trader records:

Debit Account 3571 - Price Stabilization Fund

Credit Account 632 - Cost of Goods Sold

Simultaneously, on the 25th of each month, based on the utilization calculation table of the Price Stabilization Fund of the previous month, the main trader issues a payment order to transfer funds from the Price Stabilization Fund deposit account to the settlement deposit account, recording:

Debit Account 1121 - Bank Deposits - Detailed Settlement Deposit

Credit Account 1121 - Bank Deposits - Detailed Price Stabilization Fund Deposit

c) In case the 25th falls on a holiday or public holiday, the main trader must perform the allocation and fund transfer on the first working day after the 25th.

d) Monthly, if the Price Stabilization Fund deposit account has a positive balance and generates interest income, based on the bank's notification, the main trader records:

Debit Account 1121 - Bank Deposits - Detailed Price Stabilization Fund Deposit

Credit Account 3572 - Interest Arising from the Price Stabilization Fund

đ) Based on the bank's notification regarding loan interest accrued in the month and the interest payable calculation table due to the negative Price Stabilization Fund, calculated at the maximum interest rate equal to the interest rate applied to the settlement deposit account of the bank for the portion of the negative Price Stabilization Fund usage, the main trader records:

Debit Account 3572 - Interest Arising from the Price Stabilization Fund

Credit Account 1121 - Bank Deposits - Detailed Settlement Deposit

e) At year-end, if the main trader uses the Price Stabilization Fund to offset interest accrued due to a negative Price Stabilization Fund (if any), the main trader records:

Debit Account 3571 - Price Stabilization Fund

Credit Account 3572 - Interest Arising from the Price Stabilization Fund

Or: transferring the interest balance of the Price Stabilization Fund to the Price Stabilization Fund account, recording:

Debit Account 3572 - Interest on the Price Stabilization Fund

Credit Account 3571 - Price Stabilization Fund

4. Financial Statement Presentation:

Supplement item "Price Stabilization Fund" - Code 340 on the Balance Sheet. This item reflects the Fuel Price Stabilization Fund at the reporting date. The figures entered into this item are the credit balances of Account 357 "Fuel Price Stabilization Fund", calculated based on the netting of the balances of Accounts 3571 and 3572.

When analyzing financial statements, the main trader excludes the amount on the Price Stabilization Fund deposit account and the balance of the "Price Stabilization Fund" account on the financial statement for analysis and evaluation of financial indicators.

Chapter IV

Article OIL AND PETROLEUM PRICES MANAGEMENT

The Ministry of Industry and Trade shall take the lead and coordinate with the Ministry of Finance to issue a Decision establishing the Inter-Ministerial Team for Oil and Petroleum Prices Management (hereinafter referred to as the Inter-Ministerial Team), assigning tasks to its members, and setting out the working regulations of the Inter-Ministerial Team.

Members of the Inter-Ministerial Team include: the Head of the Team being the Director of the Domestic Market Department of the Ministry of Industry and Trade; the Deputy Head of the Team being the Director of the Price Management Department of the Ministry of Finance; the Acting Deputy Head of the Team being the Deputy Director of the Domestic Market Department of the Ministry of Industry and Trade; other relevant members from the Ministry of Industry and Trade and the Ministry of Finance.

The Inter-Ministerial Team for Oil and Petroleum Prices Management shall be located at the Domestic Market Department (Ministry of Industry and Trade).

1. Tasks of the Inter-Ministerial Team

a) Advising the Heads of the Ministry of Industry and Trade and the Ministry of Finance on managing oil and petroleum prices in accordance with the law and in line with economic and social conditions, and world oil and petroleum prices during each period;

b) Calculating and publishing on the websites of the Ministry of Industry and Trade and the Ministry of Finance the base price, the difference between the base price of the current period and the previous period, on average every 15 days starting from November 1, 2014, and in accordance with Clause 9, Article 3 of Decree No. 83/2014/ND-CP;

c) Receiving price declaration documents, proposed price adjustment levels, registration documents, and price adjustment decisions of oil and petroleum traders, as stipulated in Article 38 of Decree No. 83/2014/ND-CP. Monitoring, supervising, and inspecting the price adjustments of oil and petroleum traders;

d) Managing price declaration documents, proposed price adjustment levels, registration documents of traders, and reports of the Inter-Ministerial Team submitted to the Heads of the Ministry of Industry and Trade and the Ministry of Finance on oil and petroleum price management in accordance with the law on confidential documents.

2. Authorities of the Inter-Ministerial Team

a) Having the right to request traders to explain their price declaration documents, proposed price adjustment levels, registration documents, and price adjustment decisions when these documents are found not to comply with the regulations;

b) Being authorized by the Heads of the Ministry of Industry and Trade and the Ministry of Finance to sign documents notifying related traders of their tasks in managing prices.

1. Working System of the Inter-Ministerial Team

a) The Inter-Ministerial Team performs its tasks on a part-time basis;

b) The Inter-Ministerial Team may use the seal of the Ministry of Industry and Trade, and the Head of the Inter-Ministerial Team signs on behalf of the Minister of Industry and Trade within the scope of assigned tasks and authorities regarding oil and petroleum price management;

c) The Acting Deputy Head of the Inter-Ministerial Team performs tasks as assigned by the Head of the Team.

2. Working Principles of the Inter-Ministerial Team

a) The Inter-Ministerial Team operates on a collective principle. The Head of the Team is responsible for assigning tasks to members and for reports advising the Heads of the Ministry of Industry and Trade and the Ministry of Finance. Each member of the Inter-Ministerial Team is responsible for their advisory opinions and proposals before the Head of the Team and the Heads of the Ministry of Industry and Trade and the Ministry of Finance related to oil and petroleum price management;

b) During the course of work, members of the Inter-Ministerial Team must follow the assignments of the Head of the Team; independently propose opinions but must cooperate in work, exchange information on issues related to oil and petroleum price management; they may retain their opinions during the process of work but must comply with decisions of the Heads of the Ministry of Industry and Trade and the Ministry of Finance. In cases where the opinions of the two Ministries differ, the Ministry of Industry and Trade decides and takes responsibility for the decision; if necessary, the Ministry of Industry and Trade reports

c) Adhering to confidentiality principles. Strictly prohibiting the disclosure of information during the process of managing oil and petroleum prices, and exploiting the assigned work for personal gain.

1. The Ministry of Industry and Trade - Ministry of Finance shall calculate and publish the base price according to the pricing cycle specified in Clause 9, Article 3 and Article 38 of Decree No. 83/2014/ND-CP on the electronic information website of the Ministry of Industry and Trade and the Ministry of Finance.

In case the date for publishing the base price according to the pricing cycle falls on a public holiday or a statutory holiday, the Ministry of Industry and Trade - Ministry of Finance shall publish the base price on the first working day following the holiday within the pricing cycle.

2. Based on the published base price and the level of usage of the Stabilization Fund announced by the Ministry of Industry and Trade - Ministry of Finance, principal traders and distributors may adjust retail prices (wholesale prices for motor gasoline) in accordance with Articles 37 and 38 of Decree No. 83/2014/ND-CP and Clause 4, Article 7 of this Circular but not exceeding the base price published by the Ministry of Industry and Trade - Ministry of Finance as prescribed. Specifically:

a) In cases where factors causing fluctuations result in the base price for the publication period increasing up to three percent (≤ 03%) compared to the previous base price, the Ministry of Industry and Trade - Ministry of Finance shall publish the base price without announcing the level of usage of the Stabilization Fund, allowing traders to adjust retail prices (wholesale prices for motor gasoline) in accordance with point a, Clause 3, Article 38 of Decree No. 83/2014/ND-CP;

b) In cases where factors causing fluctuations result in the base price for the publication period increasing up to three percent (≤ 03%) compared to the previous base price, but the price increase affects the economic and social situation and people's livelihood, the Ministry of Industry and Trade - Ministry of Finance shall announce the level of usage of the Stabilization Fund at the same time as publishing the base price. Traders shall not adjust retail prices or be allowed to adjust retail prices but the adjusted retail price after applying the level of usage of the Stabilization Fund shall not exceed the published base price for the publication period;

c) In cases where factors causing fluctuations result in the base price for the publication period increasing more than three percent (> 03%) up to seven percent (≤ 07%) compared to the previous base price, within three (03) working days from the date of receiving the price declaration form, the Inter-Ministerial Price Management Team for Petroleum Products must issue a written response to the principal trader regarding the adjustment of the price level and notify in writing about the usage of the Stabilization Fund (if applicable) for the principal traders to implement;

d) In cases where factors causing fluctuations result in the base price for the publication period increasing more than three percent (> 03%) up to seven percent (≤ 07%) compared to the previous base price, if within three (03) working days from the date when the Ministry of Industry and Trade - Ministry of Finance receives the price declaration form, there is no written response to the principal trader regarding the proposed price adjustment level by the principal trader, the principal trader may adjust the retail price not exceeding the base price for the publication period.

3. The permitted time for principal traders and distributors to adjust retail prices in the case of price increases is the period from after the Ministry of Industry and Trade - Ministry of Finance publishes the base price until before the Ministry of Industry and Trade - Ministry of Finance publishes the next base price; in the case of price reductions, it must be implemented strictly according to the date published by the Ministry of Industry and Trade - Ministry of Finance.

Chapter V

IMPLEMENTATION PROVISIONS

Article 14. Effective Date

This Circular takes effect from November 1, 2014. Circular No. 234/2009/TT-BTC dated December 9, 2009 issued by the Minister of Finance guiding the mechanism for forming, managing, and using the Stabilization Fund for Petroleum Products under Decree No. 84/2009/NĐ-CP dated October 15, 2009 of the Government on petroleum products trading and other previous regulations contrary to this Joint Circular are hereby abolished.

Article 15. Implementation Organization

1. The Ministry of Industry and Trade assigns the Domestic Market Department to take the lead and coordinate with relevant units within the Ministry to perform tasks according to their assigned functions and responsibilities:

a) To take the lead and coordinate with the Ministry of Finance to manage petroleum product prices, manage the establishment and use of the Stabilization Fund for Petroleum Products, inspect and supervise principal traders and distributors of petroleum products in accordance with point d, Clause 1, Article 40 of Decree No. 83/2014/ND-CP;

b) To publish information about petroleum products on the electronic information website of the Ministry of Industry and Trade in accordance with Clause 2, Article 39 of Decree No. 83/2014/ND-CP.

2. The Ministry of Finance assigns the Price Management Department to take the lead and coordinate with relevant units within the Ministry to perform tasks according to their assigned functions and responsibilities:

a) To take the lead in inspecting and supervising principal traders' compliance with the provisions of Article 37 of Decree No. 83/2014/ND-CP and related taxes and fees. Coordinate with the Ministry of Industry and Trade to inspect and supervise principal traders' compliance with the provisions of Article 38 of Decree No. 83/2014/ND-CP;

b) To perform state management functions over prices. To take the lead and coordinate with the Ministry of Industry and Trade to perform tasks stipulated in point b, Clause 2, Article 40 of Decree No. 83/2014/ND-CP;

c) To take the lead in inspecting and supervising the management of petroleum product prices; inspecting and supervising the establishment and usage levels of the Stabilization Fund for principal traders in accordance with Clause 2, Article 39 of Decree No. 83/2014/ND-CP.

3. Units under the Ministry of Industry and Trade, Ministry of Finance; Departments of Industry and Trade, Departments of Finance of provinces and centrally governed cities; organizations and individuals involved; petroleum product traders are responsible for implementing this Circular.

4. During the implementation process, if difficulties or obstacles arise, please report them to the Ministry of Industry and Trade and the Ministry of Finance for study and appropriate amendments and supplements.