Decision No. 78/2008/QD-BTC On reducing the retail price of diesel fuel and the mechanism for managing gasoline and diesel fuel business operations

Pursuant to …;

ON THE REDUCTION OF DIESEL OIL PRICES AND THE MANAGEMENT MECHANISM FOR PETROLEUM COMMODITIES BUSINESS

THE MINISTER OF FINANCE

Decree No. 77/2003/NĐ-CP July 1, 2003 Government Decree on the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Decree No. 170/2003/NĐ-CP December 25, 2003 Government Decree detailing the implementation of certain provisions of the Price Ordinance;
Decree No. 75/2008/NĐ-CP June 9, 2008 Government Decree amending and supplementing some articles of the Government Decree number 170/2003/NĐ-CP ;
Decree No. 55/2007/NĐ-CP April 6, 2007 on petroleum commodities business;
Pursuant to Document No. 253/TB-VPCP dated September 15, 2008 of the Government Office announcing the conclusions of Deputy Prime Minister Nguyen Sinh Hung on managing petroleum commodities business in the near future;
After reaching consensus with the Ministry of Industry and Trade;

DECISION:

Article 1. The retail price (inclusive of value-added tax) for certain types of standard diesel oil at actual temperature in areas close to import ports (Zone 1) throughout the country is unified as follows:

- The retail prices of the above types of diesel oil apply to households purchasing diesel oil from retail gas stations. The price of diesel oil for other consumer groups (not purchasing from retail gas stations) shall be determined according to the principle of being lower than the retail price but higher than the price sold to general agents and agents. For the price of diesel oil sold to general agents and agents, it is the retail price minus the commission rate set by the Ministry of Commerce (now the Ministry of Industry and Trade) under Decision No. 0676/2004/QĐ-BTM dated May 31, 2004.

- The price of diesel oil for areas far from import ports (Zone 2) shall not exceed 2% of the price in Zone 1. Areas in Zones 1 and 2 shall follow the current guidance of the Ministry of Commerce (now the Ministry of Industry and Trade) under Decision No. 0674/2004/QĐ-BTM dated May 31, 2004.

- Prices of other types of diesel oil not specified above shall be determined by traders engaged in export, import, or production and processing of petroleum commodities based on the actual selling price of the aforementioned standard types of diesel oil in the same market and the quality difference compared to those types.

Place of Sale:

+ Wholesale: goods are delivered to the central warehouse of the province/city on the buyer's means of transport;

+ Retail: goods are sold at gas stations and retail stores in provinces/cities on the buyer's means of transport.

Article 2. On the management mechanism for petroleum commodities business:

a. From 11:00 AM on September 16, 2008, the price of diesel oil by traders engaged in export, import, or production and processing of petroleum commodities shall be implemented according to the market price mechanism stipulated in Government Decree No. 55/2007/NĐ-CP dated April 6, 2007 on petroleum commodities business; Government Decree No. 75/2008/NĐ-CP dated June 9, 2008 amending and supplementing some articles of Government Decree No. 170/2003/NĐ-CP detailing the implementation of certain provisions of the Price Ordinance and the regulations of the Ministry of Finance on the management and pricing mechanism for gasoline and diesel oil sales.

b. The price of gasoline, kerosene, and fuel oil by traders engaged in export, import, or production and processing of petroleum commodities shall continue to be decided according to Article 3 of Decision No. 57/2008/QĐ-BTC dated July 21, 2008 of the Ministry of Finance on the price of gasoline and other types of oil.

Article 3. Responsibilities of production and business units and related organizations:

a. Enterprises engaged in production and business must strictly comply with the directives of the Prime Minister: continue to implement measures to reduce costs, particularly fuel and oil expenses, to lower product costs. Merchants involved in exporting, importing, or producing and processing fuel and oil must continue to reduce management costs.

b. Merchants involved in exporting, importing, or producing and processing fuel and oil shall conduct inventory according to current regulations for their fuel distribution systems before adjusting prices, ensuring smooth business operations and preventing negative impacts.

c. Merchants involved in exporting, importing, or producing and processing fuel and oil shall jointly bear legal responsibility for price violation acts and commercial fraud in the sale of fuel and oil within their distribution systems.

d. Other merchants involved in exporting, importing, or producing and processing fuel and oil shall be responsible for importing fuel and oil according to schedule, implementing circulation reserves as prescribed to ensure sufficient supply of fuel and oil for domestic market needs under all circumstances.

đ. Provincial Departments of Finance shall cooperate with Provincial Departments of Industry and Trade, Market Management Branches to inspect the implementation of fuel and oil selling prices in their respective localities, linking price inspections with quality assurance and measurement unit checks corresponding to the selling price, promptly identifying and handling violations within their authority according to current regulations or reporting to competent authorities for handling in accordance with the law.

Article 4. This Decision takes effect from 11:00 on September 16, 2008, and replaces the retail price of diesel oil set forth in Decision No. 57/2008/QD-BTC dated July 21, 2008, regarding gasoline and other types of oil prices. Previous provisions contrary to this Decision are hereby abolished.

Article 5.The Head of the Ministry of Finance's Office, the Director of the Price Management Department, and heads of related organizations are responsible for enforcing this Decision./.