Decree No. 84/2009/ND-CP on Trading in Petroleum Products

DECREE

Regarding petroleum business

________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Trade dated June 14, 2005;

Considering the proposal of the Minister of Industry and Trade,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Decree stipulates the petroleum business and the conditions for conducting the petroleum business in the Vietnamese market.

Article 2. Applicability

1. This Decree applies to Vietnamese traders as prescribed by the Trade Law.

2. This Decree does not apply to traders importing, producing, and blending types of petroleum products specifically for their own needs, which are not circulated on the market as specified by the Ministry of Industry and Trade.

Article 3. Explanation of Terms

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

1. Petroleum refers collectively to the products from crude oil refining processes used as fuel, including motor gasoline, diesel oil, kerosene, bitumen, jet fuel; other products used as engine fuel, excluding liquefied gas types.

2. Petroleum business includes activities such as exporting (petroleum, domestic production materials, and imported petroleum, raw materials), importing, temporary import for re-export, transshipment, processing for export of petroleum and raw materials; producing and blending petroleum; distributing petroleum in the domestic market; services of leasing warehouses, ports, refueling, storage, and transportation of petroleum.

3. Petroleum production is the process of refining, converting crude oil, petroleum products, semi-finished petroleum products, additives, and other preparations into petroleum products.

4. Petroleum blending is the process of mixing petroleum products, semi-finished petroleum products, additives, and other preparations to convert them into petroleum products.

5. Petroleum business premises include specialized ports, production plants, blending workshops, warehouses, transportation means, and retail outlets for petroleum.

6. Raw materials for producing and blending petroleum include: crude oil, petroleum products, semi-finished petroleum products, additives, and other preparations.

7. World petroleum price is the price traded on the international market determined and announced by the Joint Ministry of Finance - Industry and Trade.

8. Retail petroleum price is the price posted at retail outlets for petroleum.

9. Base price is the price used to form the retail petroleum price, including various factors and calculated as follows: (CIF Price + Import Tax + Special Consumption Tax) x Foreign Exchange Rate + Standard Operating Costs + Stabilization Fund + Pre-Tax Standard Profit + Value Added Tax + Fuel Fee + Other Taxes, Fees, and Deductions as prescribed by current laws; averaged over the number of days of reserve circulation as stipulated in Article 22 of this Decree; wherein:

CIF Price is the world petroleum price + Insurance Fee + Transportation Cost to Vietnam's port;

Foreign Exchange Rate is the average selling rate of commercial banks with which the main trader conducts transactions;

Import Tax, Special Consumption Tax, Value Added Tax, Fuel Fee; other taxes, fees, and deductions (if applicable) as prescribed by law;

Standard Operating Costs, Pre-Tax Standard Profit, Stabilization Fund as prescribed by the Ministry of Finance.

10. Petroleum traders include: exporters and importers of petroleum; producers of petroleum; general agents and retail agents of petroleum; traders of petroleum service businesses.

11. Main traders include: exporters and importers of petroleum and producers of petroleum.

Article 4. Application of international treaties and related laws

1. Foreign traders conducting gasoline and diesel business in Vietnam according to international treaties to which the Socialist Republic of Vietnam is a member must comply with the provisions of this Decree; in cases where the international treaty provides differently from the provisions of this Decree, the provisions of that international treaty shall be applied.

2. Traders conducting gasoline and diesel business, in addition to complying with the provisions of this Decree, must also comply with other relevant legal provisions.

Article 5. Planning for the development of the gasoline and diesel trading system

1. The Ministry of Industry and Trade shall take the lead and coordinate with relevant ministries and sectors to establish and publicly announce the planning for the development of the gasoline and diesel trading system based on alignment with the orientation of the petroleum industry's development in Vietnam and economic and social development until 2020; planning for the development of the main oil depot system, strategic oil reserve depots and circulation reserves, and the national gasoline and diesel pipeline system.

2. The Ministry of Transport shall establish new construction projects or renovation and upgrading projects for the transportation system, coordinating with the Ministry of Industry and Trade, relevant ministries and sectors, and provincial People's Committees under the central government to determine appropriate connection points compatible with the planned gasoline and diesel trading infrastructure.

3. Provincial and municipal People's Committees under the central government are responsible for establishing and publicly announcing the planning for the network of retail gasoline and diesel stores and oil depots serving circulation needs within their administrative areas. Retail gasoline and diesel stores must comply with the National Standards announced by the Ministry of Science and Technology; specifically in border areas, they must adhere to regulations ensuring safety for management and protection of border lines and preventing fuel smuggling across borders.

4. Encouragement is given to traders from various economic components to invest in developing gasoline and diesel trading facilities in accordance with approved planning by competent authorities.

Article 6. Fire prevention, firefighting, and environmental protection

1. Gasoline and diesel trading facilities must continuously ensure compliance with legal provisions on fire prevention, firefighting, and environmental protection during their operations.

2. Traders conducting gasoline and diesel business must organize regular inspections of trading facilities to strictly implement legal provisions on fire prevention, firefighting, and environmental protection.

Chapter II

GASOLINE AND DIESEL TRADING

SECTION 1. GASOLINE AND DIESEL EXPORT AND IMPORT TRADING

Article 7. Conditions for Issuing Export and Import Trading Licenses for Gasoline and Diesel

Traders meeting the conditions stipulated below shall be issued Export and Import Trading Licenses for Gasoline and Diesel:

1. A business established in accordance with the law, with gasoline and diesel trading registered in its Business Registration Certificate;

2. Possessing a dedicated wharf within the Vietnamese international port system capable of receiving oil tankers or other fuel transport vehicles with a minimum capacity of seven thousand tons (7,000T), owned by the enterprise or jointly owned or leased for a minimum of five (05) years;

3. Having an import fuel reception depot with a minimum capacity of fifteen thousand cubic meters (15,000m³) to directly receive fuel from oil tankers and other fuel transport vehicles, owned by the enterprise or jointly owned or leased for long-term use for a minimum of five (05) years;

4. Possessing dedicated fuel transport vehicles owned by the enterprise or jointly owned or leased for long-term use for a minimum of five (05) years to ensure supply to its distribution system;

5. Having its own distribution system: at least ten (10) retail stores owned or jointly owned and a minimum of forty (40) retail fuel distributors;

6. Traders engaged in exporting and importing aviation fuel are not required to have the distribution system specified in Clause 5 of this Article but must possess fuel loading equipment owned or jointly owned by the trader.

Article 8. Competence, Documents, and Procedure for Issuing Business Licenses for Exporting and Importing Petroleum Products

1. The Ministry of Industry and Trade shall be responsible for issuing business licenses for exporting and importing petroleum products to traders who meet the conditions stipulated in Article 7 of this Decree.

2. Application Documents for Issuing Business Licenses for Exporting and Importing Petroleum Products

a) For new issuance, the application includes:

- An application form for a business license for exporting and importing petroleum products according to Form No. 1 attached to this Decree;

- A valid copy of the business registration certificate;

- A list of technical facilities serving the export and import of petroleum products as prescribed in Clauses 2, 3, and 4 of Article 7 of this Decree, accompanied by supporting documents;

- A list of retail gas stations owned or co-owned and a list of general agents and agents within the petroleum product distribution system of the trader as prescribed in Clause 5 of Article 7 of this Decree, accompanied by supporting documents.

b) For supplementary or amendment issuance

In cases where there are changes to the contents of the business license for exporting and importing petroleum products, the trader must submit an application to the Ministry of Industry and Trade requesting supplementary or amended issuance. The application includes:

- A written request for supplementary or amendment;

- The original business license for exporting and importing petroleum products that has been issued;

- Supporting documents for the supplementary or amendment request.

c) For reissuance

In cases where the business license for exporting and importing petroleum products is lost, burned, or destroyed in another manner, the trader must submit an application to the Ministry of Industry and Trade requesting reissuance of the business license. The application includes:

- A written request for reissuance;

- The original or a valid copy of the business license for exporting and importing petroleum products (if available).

In cases where the business license for exporting and importing petroleum products expires, the trader must submit an application as prescribed in point a of this clause and send it to the Ministry of Industry and Trade thirty (30) days before the expiration date of the license.

3. Procedure for Issuing Business Licenses for Exporting and Importing Petroleum Products

a) The trader submits the application to the Ministry of Industry and Trade.

b) Within thirty (30) working days from the date of receipt of a complete application, the Ministry of Industry and Trade shall examine, review, and issue a business license for exporting and importing petroleum products according to Form No. 2 attached to this Decree to the trader. If the issuance is refused, the Ministry of Industry and Trade must provide a written response stating the reasons.

c) In cases where the application is incomplete, within seven (07) days from the date of receipt of the trader's application, the Ministry of Industry and Trade shall issue a written request for the trader to supplement the application.

4. The business license for exporting and importing petroleum products has a validity period of five (05) years from the date of issuance.

5. Traders who have been granted a business license for exporting and importing petroleum products must pay fees and charges as prescribed by the Ministry of Finance.

6. The business license for exporting and importing petroleum products will be revoked in the following cases: expiration of its validity period; cessation of trading activities in exporting and importing petroleum products; bankruptcy of the trader as prescribed by law; and other cases as prescribed by law.

Article 9. Rights and Obligations of Merchants Engaging in Export and Import of Petroleum Products

1. Based on the minimum import quota assigned annually by the Ministry of Industry and Trade, merchants engaged in export and import of petroleum products shall be responsible for importing sufficient quantities to ensure quality, structure, and types of petroleum products required for the distribution system and the minimum level of circulating petroleum product reserves as stipulated in Article 22 of this Decree.

2. Export petroleum products, domestic production raw materials, and imported petroleum products and raw materials; temporarily import for re-export, transshipment, processing for export of petroleum products and raw materials according to the provisions set forth in Article 24 of this Decree.

3. Be permitted to buy and sell petroleum products and raw materials with other key traders.

4. Comply with regulations and bear responsibility for prices, quantities, and quality of petroleum products sold in the market.

5. In addition to selling directly to industrial households, they may only enter into contracts with traders who meet the conditions to act as general agents or agents as specified in Articles 13 and 14, and these traders must not violate the provisions of Clause 1 or Clause 2 of Article 17 of this Decree; they must register their distribution systems in accordance with the regulations of the Ministry of Industry and Trade.

6. Must uniformly specify the name of the merchant engaging in export and import of petroleum products at retail outlets within their distribution system and organize inspections and supervision of enterprises under their distribution system. The use of logos, trademarks, and trade descriptions of merchants engaging in export and import of petroleum products must comply with the Intellectual Property Law and other relevant laws.

7. May only transfer or bunker petroleum products at locations designated by the Ministry of Transport or provincial/municipal People's Committees directly under the central government; transferring or bunkering petroleum products from large ships or other transport means that Vietnamese ports cannot directly handle must be regulated by port authorities.

8. Adhere to legal regulations concerning fire prevention, firefighting, and environmental protection during business operations.

9. Have the right to import or purchase domestically raw materials for blending petroleum products. Raw material imports must follow plans registered and confirmed by the Ministry of Industry and Trade, notified to customs authorities to process and control the raw material imports of the merchant.

10. May provide aviation fuel services if they meet the conditions stipulated by current relevant laws.

11. May apply international practices suitable tools and transactions for trading and purchasing petroleum products.

PART 2. PETROLEUM PRODUCT PRODUCTION

Article 10. Conditions for Petroleum Product Production

Merchants meeting the following conditions are permitted to produce petroleum products:

1. A business established in accordance with the law, with gasoline and diesel trading registered in its Business Registration Certificate;

2. Possess a petroleum product production facility in accordance with approved planning and investment permission granted by competent authorities.

3. Have a testing and measuring laboratory with sufficient capacity to check the quality of produced petroleum products in accordance with current regulations.

Article 11. Rights and Obligations of Merchants Producing Petroleum Products

1. Produce petroleum products according to annual plans registered and confirmed by the Ministry of Industry and Trade; maintain minimum levels of petroleum product and raw material reserves for production consistent with approved investment projects and registered production plans with the Ministry of Industry and Trade.

2. Be allowed to purchase domestic raw materials, directly import raw materials, or entrust merchants with export and import licenses for petroleum products to carry out such activities. Raw material imports must follow plans registered and confirmed by the Ministry of Industry and Trade, notified to customs authorities to process and control the raw material imports of the merchant.

3. Be permitted to accept domestic processing and export processing of petroleum products.

4. Petroleum products put into circulation must comply with National Technical Regulations and Announced Standards.

5. Be allowed to consume domestically petroleum products produced within their own distribution system organized in accordance with the provisions of this Decree or sell them exclusively to other key traders.

Export petroleum products produced according to plans registered with the Ministry of Industry and Trade, consistent with approved investment projects.

6. Organize domestic distribution systems for petroleum products must comply with the provisions applicable to merchants engaged in export and import of petroleum products as stipulated in Clause 4 and Clause 5 of Article 7; Clauses 3, 4, 5, 6, 7, and 8 of Article 9 of this Decree.

PART 3. PETROLEUM DISTRIBUTION BUSINESS

Article 12. Rights to Distribute Petroleum

Primary traders may carry out petroleum distribution through affiliated units, including member enterprises, branches, warehouses, retail stores of the enterprise, or through a system of general agents and retail agents for petroleum products in accordance with the provisions of this Part.

Article 13. Conditions for General Agents Engaging in Petroleum Business

A trader meeting all of the following conditions shall be eligible to act as a general agent for petroleum business (hereinafter referred to as "general agent"):

1. A business established in accordance with the law, with gasoline and diesel trading registered in its Business Registration Certificate;

2. Possessing a warehouse or tank with a minimum capacity of five thousand cubic meters (5,000m³), owned by the enterprise or jointly owned or leased for a long term of at least five (05) years to ensure stable supply for its own distribution system;³3. Having a petroleum distribution system, including a minimum of five (05) retail stores owned by the enterprise or jointly owned, and a minimum of twenty (20) retail agents for petroleum products. This distribution system must be within the distribution system of the primary trader and subject to control by that trader;

4. Possessing specialized petroleum transport vehicles owned by the enterprise or jointly owned or leased for a long term of at least five (05) years;

5. Management staff and direct sales personnel must have been trained in technical safety practices for fire prevention and extinguishing and environmental protection according to current regulations.

Article 14. Conditions for Retail Agents for Petroleum Products

A trader meeting all of the following conditions shall be eligible to act as a retail agent for petroleum products (hereinafter referred to as "retail agent"):

2. Possessing a retail store for petroleum products owned by the enterprise or jointly owned.

1. A business established in accordance with the law, with gasoline and diesel trading registered in its Business Registration Certificate;

3. Management staff and direct sales personnel must have been trained in technical safety practices for fire prevention and extinguishing and environmental protection according to current regulations.

Article 15. Conditions for Issuing a Certificate of Eligibility for Petroleum Business for Retail Stores

A retail store for petroleum products meeting all of the following conditions shall be issued a Certificate of Eligibility for Petroleum Business:

1. The location of the retail store for petroleum products must comply with the approved planning scheme by the competent authority;

2. It must be constructed and equipped in accordance with the current standards for petroleum retail stores issued by the Ministry of Science and Technology.

Article 16. Authority, Documents, and Procedure for Issuing a Certificate of Eligibility for Petroleum Business for Retail Stores

Article 15. Conditions for Issuing a Certificate of Eligibility for Petroleum Business for Retail Stores

1. The Department of Industry and Trade is responsible for issuing a Certificate of Eligibility for Petroleum Business to retail stores for petroleum products that meet the conditions stipulated in Article 15 of this Decree.

2. Application documents for issuing a Certificate of Eligibility for Petroleum Business

- An application form for a Certificate of Eligibility for Petroleum Business, in accordance with Form No. 3 attached to this Decree;

a) For new issuance, the application includes:

- A certified copy of the business registration certificate of the owner of the retail store for petroleum products;

- A list of equipment of the retail store for petroleum products in accordance with Clause 2 of Article 15 of this Decree and documents proving the legality of construction of the retail store for petroleum products;

- A certified copy of the training certificates of management staff and employees of the retail store in accordance with Clause 3 of Article 15 of this Decree.

b) In cases of supplementary issuance or amendment:

If there are changes to the contents of the Certificate of Eligibility for Petroleum Business, the trader must submit an application to the Department of Industry and Trade requesting supplementary issuance or amendment of the Certificate. The application includes:

- The original Certificate of Eligibility for Petroleum Business already issued;

- A written request for supplementary or amendment;

c) In cases of reissuance:

- Supporting documents for the supplementary or amendment request.

If the Certificate of Eligibility for Petroleum Business is lost, burned, or destroyed in another manner, the trader must submit an application to the Department of Industry and Trade requesting reissuance of the Certificate. The application includes:

- The original or a certified copy of the Certificate of Eligibility for Petroleum Business (if available).

- A written request for reissuance;

If the Certificate of Eligibility for Petroleum Business expires, the trader must submit an application as for a new issuance under point a of this clause and send it to the Department of Industry and Trade thirty (30) days before the Certificate expires.

3. Procedure for Issuing a Certificate of Eligibility for Petroleum Business

a) The trader submits the application to the Department of Industry and Trade;

b) Within thirty (30) working days from the date of receipt of a complete application, the Department of Industry and Trade is responsible for reviewing, assessing, and issuing a Certificate of Eligibility for Petroleum Business in accordance with Form No. 4 attached to this Decree to the trader. If the issuance is refused, the Department of Industry and Trade must provide a written response stating the reasons;

c) If the application is incomplete, within seven (07) days from the date of receiving the application from the trader, the Department of Industry and Trade will issue a written request for the trader to supplement the documents;

4. The Certificate of Eligibility for Petroleum Business has a validity period of five (05) years from the date of issuance.

5. Traders who are issued a Certificate of Eligibility for Petroleum Business must pay fees and charges as prescribed by the Ministry of Finance.

6. The Certificate of Eligibility for Petroleum Business will be revoked in the following circumstances: expiration of the validity period; cessation of petroleum business activities by the trader; bankruptcy of the trader as defined by law, and other cases as provided by law.

6. The business operation certificate for petroleum products shall be revoked in the following cases: expiration of its validity period; the trader ceases to engage in petroleum product trading activities; the trader is declared bankrupt in accordance with the law; and other cases as prescribed by law.

Article 17. Rights and Obligations of General Agents, Agents, and Retail Gasoline and Diesel Oil Stores

1. A general agent may only enter into a general agency contract with one (01) principal trader.

2. An agent may only enter into a retail agency contract for gasoline and diesel oil with one (01) general agent or one (01) principal trader.

3. Retail gasoline and diesel oil stores within the distribution system of a principal trader must be subject to the control of that trader; they must post prices for all types of gasoline and diesel oil according to the agency contract and sell at the posted price; signs must include all contents as prescribed by law.

4. They may only buy and sell gasoline and diesel oil with traders within their own distribution system as stipulated in Clause 1 and Clause 2 of this Article, to sell to consumers and bear responsibility for the quality, quantity, and selling price of gasoline and diesel oil as prescribed.

5. Speculative activities, hoarding, excessive price increases, spreading false information, smuggling, fraudulent trade practices, and other deceptive acts are strictly prohibited.

6. Maintain record-keeping systems for business operations involving gasoline and diesel oil in accordance with regulations set forth by the Ministry of Finance.

7. Adhere to legal provisions on fire prevention, firefighting, and environmental protection during business operations.

8. Branches, subsidiaries, warehouses, and retail gasoline and diesel oil stores under the principal trader must comply with the provisions of Articles 15 and 16 and the provisions of this Article.

9. In addition to hanging signs as required by current regulations, if using the commercial name, logo, trademark, or trade designation of the principal trader, it must be done through a contract consistent with the Intellectual Property Law.

10. A general agent has the obligation to inspect and supervise the activities of agents within its distribution system; jointly bear responsibility for violations committed by agents in the business of gasoline and diesel oil as prescribed by law.

Section 4. GASOLINE AND DIESEL OIL SERVICE BUSINESS

Article 18. Conditions for Operating Port and Warehouse Reception Services for Gasoline and Diesel Oil

1. Established in accordance with the law, the Business Registration Certificate must include registration for the business of gasoline and diesel oil.

2. Have specialized wharfs located within the maritime port system or inland waterway port system, with warehouses owned by the enterprise or co-owned, constructed according to specified standards and approved by competent authorities.

Article 15. Conditions for Issuing a Certificate of Eligibility for Petroleum Business for Retail Stores

Article 19. Conditions for Operating Transportation Services for Gasoline and Diesel Oil

1. Established in accordance with the law, the Business Registration Certificate must include registration for the business of gasoline and diesel oil.

2. Own specialized transportation vehicles for gasoline and diesel oil, either wholly or jointly owned; ensure requirements and standards for transporting gasoline and diesel oil as prescribed, and obtain approval from competent authorities to operate as required by law.

3. Management staff and personnel directly operating transportation vehicles must be trained in technical safety, fire prevention, firefighting, and environmental protection as currently prescribed.

Article 20. Rights and Obligations of Traders Engaged in Gasoline and Diesel Oil Service Businesses

1. Bear responsibility for the quantity and quality of gasoline and diesel oil during reception, storage, and transportation according to contracts signed with traders renting reception, storage, and transportation services for gasoline and diesel oil.

2. If engaging in other businesses related to gasoline and diesel oil (general agency, agency), they must comply with the relevant provisions of this Decree regarding such business activities.

3. Adhere to legal provisions on fire prevention, firefighting, and environmental protection during business operations.

PART 5. PETROLEUM PRODUCTS CIRCULATING RESERVES

Article 21. Subjects Implementing Petroleum Products Circulating Reserves

1. The subjects implementing petroleum products circulating reserves are key traders.

2. National reserves of petroleum products shall be implemented according to separate regulations of the Government.

Article 22. Petroleum Products Circulating Reserves

1. From the date this Decree takes effect until 2025, traders engaged in exporting and importing petroleum products must ensure a stable level of petroleum products circulating reserves equivalent to thirty (30) days of supply in terms of product structure, based on their annual consumption plan.

2. From the date this Decree takes effect until 2025, traders producing petroleum products with distribution systems in the domestic market must ensure a stable level of petroleum products circulating reserves equivalent to thirty (30) days of supply in terms of product structure, based on their registered annual domestic petroleum consumption plan with the Ministry of Industry and Trade.

3. After 2025, traders specified in Clause 1 and Clause 2 of this Article shall be responsible for ensuring the minimum level of petroleum products circulating reserves as prescribed by the Prime Minister.

Chapter III

PETROLEUM PRODUCTS BUSINESS MANAGEMENT

Article 23. Importation of Petroleum Products

1. Annually, based on the national economy's demand for petroleum products and domestic production capacity, the Ministry of Planning and Investment, in coordination with the Ministry of Industry and Trade, determines the directional import demand for petroleum products for the following year. The demand for petroleum products for defense purposes is determined separately.

2. Based on the directional import demand for petroleum products, the Ministry of Industry and Trade assigns the minimum annual import quota by product type to each trader holding a Business License for Exporting and Importing Petroleum Products to process import procedures with customs authorities.

3. Based on market demand, traders engaged in exporting and importing petroleum products decide the quantity of various types of petroleum products to import for domestic consumption but not less than the assigned minimum quota.

4. The Ministry of Industry and Trade, in coordination with relevant ministries and sectors, monitors the importation of petroleum products by traders to ensure they meet the needs of the economy and societal consumption. In necessary cases, the Ministry of Industry and Trade adjusts the minimum import quotas assigned to traders.

Article 24. Export, Temporary Import for Re-export, Transshipment, and Processing Export of Petroleum Products and Raw Materials

1. Only traders holding a Business License for Exporting and Importing Petroleum Products may export (domestically produced petroleum products and raw materials, and imported petroleum products and raw materials), temporarily import for re-export, transship petroleum products and raw materials. Only producers of petroleum products may export and process export petroleum products.

2. Temporary import for re-export, transshipment, and processing export of petroleum products and raw materials shall be carried out in accordance with current laws.

3. The Ministry of Finance guides customs procedures for the export of petroleum products and raw materials of imported origin.

Article 25. Import Tax on Petroleum Products

Based on the tax rate framework issued by the Standing Committee of the National Assembly, macroeconomic indicators, and forecasts of world petroleum prices, the Ministry of Finance, in coordination with the Ministry of Industry and Trade, stipulates a stable import tax rate for petroleum product types that align with economic and social conditions during specific periods and international commitments.

Article 26. Price Stabilization Fund

1. Primary traders have the obligation to establish the Price Stabilization Fund to participate in price stabilization as prescribed in Article 27 of this Decree.

2. The Price Stabilization Fund shall be established within enterprises, recorded separately, and only used for the purpose of price stabilization.

3. The Ministry of Finance shall guide the mechanism for forming, managing, and using the Price Stabilization Fund.

Article 27. Retail Prices of Oil Products

1. Principles for Managing Retail Prices of Oil Products

a) Retail prices of oil products are implemented under market mechanisms with state management;

b) Primary traders have the right to decide wholesale prices; adjustments to retail prices of oil products shall be carried out according to the principles and procedures stipulated herein; they are responsible for participating in price stabilization in accordance with current laws and shall be compensated for reasonable costs incurred during such participation.

c) The minimum time between two consecutive price increases is ten (10) calendar days, while the maximum time between two consecutive price decreases is also ten (10) calendar days; when adjusting retail prices of oil products, primary traders must simultaneously submit their pricing decisions and plans to competent state agencies.

d) Competent state agencies, upon receiving the pricing decisions and plans from primary traders, shall monitor to ensure that the price adjustments made by primary traders comply with legal regulations.

đ) Based on economic and social conditions, world oil prices during each period, the Prime Minister decides to adjust the provisions set forth in Clause 2 and Clause 3 of this Article.

2. Reduction in Retail Prices of Oil Products

a) In cases where factors causing fluctuations result in a base price reduction of up to twelve percent (≤ 12%) compared to the current retail price, primary traders must correspondingly reduce the retail price;

b) In cases where factors causing fluctuations result in a base price reduction exceeding twelve percent (>12%) compared to the current retail price, after the competent authority applies financial regulatory measures as prescribed by law (Import Tax, Price Stabilization Fund...), primary traders continue to reduce their retail prices; there is no limit to the time interval between two reductions and the number of reductions.

3. Increase in Retail Prices of Oil Products

a) In cases where factors causing fluctuations result in a base price increase of up to seven percent (≤ 07%) compared to the current retail price, primary traders may correspondingly increase the retail price;

b) In cases where factors causing fluctuations result in a base price increase exceeding seven percent (> 07%) but not more than twelve percent (≤ 12%) compared to the current retail price, primary traders may increase the price according to point a of this clause plus (60%) of the base price increase above seven percent (> 07%) to twelve percent (≤ 12%), with the remaining forty percent (40%) being used from the Price Stabilization Fund to compensate as guided by the Ministry of Finance;

c) In cases where factors causing fluctuations result in a base price increase exceeding twelve percent (>12%) compared to the current retail price or where price increases affect economic and social development and people's livelihoods, the State announces the application of price stabilization measures through tax regulation, the Price Stabilization Fund, and in accordance with current laws.

Article 28. Management of Quantity and Quality of Gasoline and Diesel Oil

1. Only gasoline and diesel oil meeting the National Technical Regulations and Announced Standards shall be permitted to circulate on the Vietnamese market.

2. Business entities trading in gasoline and diesel oil must comply with current regulations on the management of gasoline and diesel oil quality during importation, production, blending, storage, transportation, and sale to consumers; they are responsible for the quality of gasoline and diesel oil within their distribution system. They must ensure the accuracy of measuring instruments used for selling gasoline and diesel oil to users; sell sufficient quantities and correct quality.

3. The Ministry of Science and Technology is responsible for directing the calibration of measuring devices according to current laws on measurement and ensuring quality in accordance with National Technical Regulations and Announced Standards; coordinating with relevant ministries and sectors to review national standards and technical regulations on gasoline and diesel oil to adjust and supplement quality indicators and testing methods that are compatible with regional and international standards; designating domestic conformity assessment organizations; conducting mutual recognition of conformity assessment results from foreign organizations to ensure timely, rapid, accurate, and convenient inspection work.

Article 29. Responsibilities of Ministries

In addition to specific responsibilities stipulated in the provisions of this Decree, ministries within the scope of their functions, tasks, and authorities have the responsibility to:

1. Ministry of Industry and Trade

a) Inspect and supervise lead business entities' compliance with conditions and regulations set forth in Articles 7, 9, 10, 11, and 22 of this Decree;

b) Issue regulations on agency operations in gasoline and diesel oil trade; inspect and supervise business entities' compliance with conditions and regulations set forth in Articles 13, 14, 15, 16, and 17 of this Decree;

c) Inspect and supervise business entities' compliance with conditions and regulations set forth in Articles 18, 19, and 20 of this Decree.

2. Ministry of Finance

Inspect and supervise lead business entities' implementation of regulations set forth in Articles 26 and 27 of this Decree.

3. The Ministry of Science and Technology

a) Inspect and supervise business entities trading in gasoline and diesel oil's compliance with related regulations set forth in Articles 9, 10, 11, 15, 17, and 28 of this Decree.

b) Amend, supplement, and perfect standards for retail gasoline and diesel oil outlets and implement uniform regulations nationwide.

4. The Ministry of Transport, in collaboration with the Ministry of Industry and Trade, the Ministry of Science and Technology, and relevant agencies, shall establish standards and conditions for connection points between the transportation system and the business infrastructure for gasoline and diesel oil.

5. Ministries, sectors, provincial People's Committees under the Central Government have the responsibility to perform state management functions within their authority over related provisions in this Decree.

Chapter IV

INSPECTION, AUDIT, AND VIOLATION HANDLING

Article 30. Inspection and Audit of Gasoline and Diesel Oil Trading Activities

1. Business entities trading in gasoline and diesel oil must submit to inspections and audits by authorized agencies according to the law on gasoline and diesel oil trading activities.

2. Inspection and audit of gasoline and diesel oil trading activities must be carried out in accordance with functions, authorities, and legal provisions on inspection and audit.

3. Ministries, ministerial-level agencies, and provincial People's Committees, within their functions and tasks, have the responsibility to direct and organize inspections and audits of compliance with this Decree and related documents; promptly prevent and handle violations to ensure stability in the gasoline and diesel oil market and meet economic and social development requirements.

Article 31. Violations against traders dealing with gasoline and diesel oil

1. Violations of traders exporting, importing gasoline and diesel oil

a) Exporting, importing gasoline and diesel oil without a Business License for Exporting and Importing Gasoline and Diesel Oil;

b) During the business operation of gasoline and diesel oil, failing to ensure the conditions prescribed in Article 7 of this Decree;

c) Failing to ensure the quality of gasoline and diesel oil sold on the market as prescribed by law;

d) Importing gasoline and diesel oil below the level assigned annually by the Ministry of Industry and Trade as prescribed in Article 23 of this Decree or maintaining the minimum level of circulating reserves of gasoline and diesel oil as prescribed in Article 22 of this Decree;

đ) Transferring or transferring gasoline and diesel oil to incorrect positions as prescribed by the Ministry of Transport or the People's Committee of provinces and centrally-run cities;

e) Signing agency contracts with traders who do not meet the conditions to be a general agent as prescribed in Article 13 of this Decree or signing agency contracts with traders who do not meet the conditions to be an agent as prescribed in Article 14 of this Decree;

g) Signing contracts with general agents or agents violating the provisions of Clause 1 or Clause 2 of Article 17 of this Decree;

h) Buying and selling gasoline and diesel oil to prohibited entities as prescribed in Clause 3 of Article 9 of this Decree or selling gasoline and diesel oil to entities outside their distribution system as prescribed in this Decree;

i) Failing to uniformly record the name of the trader exporting and importing gasoline and diesel oil at retail gas stations within their distribution system as prescribed in Clause 6 of Article 9 of this Decree;

k) Increasing or decreasing prices in violation of Article 27 of this Decree or engaging in price monopoly behavior;

l) Continuing to operate the export and import of gasoline and diesel oil after the Business License for Exporting and Importing Gasoline and Diesel Oil has been revoked;

m) Other violations prescribed in this Decree and other relevant laws.

2. Violations of traders producing gasoline and diesel oil

a) Producing gasoline and diesel oil that does not fully meet the conditions prescribed in Article 10 or producing below the annual plan registered or producing not according to the schedule registered as prescribed in Article 11 or maintaining the minimum level of circulating reserves of gasoline and diesel oil as prescribed in Article 22 of this Decree;

b) Importing raw materials contrary to the provisions of Clause 1 or Clause 2 of Article 11 of this Decree;

c) Putting gasoline and diesel oil into circulation without being certified as meeting National Technical Regulations or failing to ensure the quality of gasoline and diesel oil as prescribed in Clause 3 of Article 11 of this Decree;

d) Exporting or selling gasoline and diesel oil produced by the trader in violation of regulations or to incorrect entities as prescribed in Clause 4 or Clause 5 of Article 11 of this Decree;

đ) Transferring or transferring gasoline and diesel oil to incorrect positions as prescribed by the Ministry of Transport or the People's Committee of provinces and centrally-run cities;

e) Signing agency contracts with traders who do not meet the conditions to be a general agent as prescribed in Article 13 of this Decree or signing agency contracts with traders who do not meet the conditions to be an agent as prescribed in Article 14 of this Decree;

g) Signing contracts with general agents or agents violating the provisions of Clause 1 or Clause 2 of Article 17 of this Decree;

h) Failing to uniformly record the name of the producer of gasoline and diesel oil at retail gas stations within their distribution system as prescribed in Clause 6 of Article 9 of this Decree;

i) Increasing or decreasing prices in violation of Article 27 of this Decree or engaging in price monopoly behavior;

k) Other violations prescribed in this Decree and other relevant laws.

3. Violations of traders acting as general agents or agents selling gasoline and diesel oil at retail

a) Dealing with gasoline and diesel oil without meeting the conditions prescribed in Article 13 or Article 14 of this Decree;

b) Signing contracts to act as a general agent or agent contrary to the provisions of Clause 1 or Clause 2 of Article 17 of this Decree;

c) Buying and selling gasoline and diesel oil in violation of the provisions of Clause 4 of Article 17 of this Decree;

d) Failing to ensure the quantity and quality of gasoline and diesel oil sold on the market as prescribed by law;

đ) Engaging in speculative activities, hoarding goods, excessively increasing prices, spreading false information, smuggling, commercial fraud, and other deceptive behaviors;

e) Transferring or transferring gasoline and diesel oil to incorrect positions as prescribed by the Ministry of Transport or the People's Committee of provinces and centrally-run cities;

g) Illegally using trade names, logos, trademarks, or trade indicators as prescribed by the Intellectual Property Law and violating commitments in contracts;

h) Continuing to operate the business of gasoline and diesel oil after the Certificate of Eligibility for Gasoline and Diesel Oil Business has been revoked;

i) Other violations prescribed in this Decree and other relevant laws.

4. Violations of retail gas stations

a) Dealing with gasoline and diesel oil without a Certificate of Eligibility for Gasoline and Diesel Oil Business;

b) During the business operation of gasoline and diesel oil, failing to ensure the conditions prescribed in Article 15 of this Decree;

c) Not having a signboard or incorrectly recording the signboard as prescribed in Clause 3 or Clause 9 of Article 17 of this Decree;

d) Not posting prices or incorrectly posting prices according to the agency contract or selling at incorrect posted prices as prescribed in Clause 3 of Article 17 of this Decree;

đ) Buying and selling gasoline and diesel oil in violation of the provisions of Clause 4 of Article 17 of this Decree;

e) Failing to ensure the quantity and quality of gasoline and diesel oil sold on the market as prescribed by law;

g) Engaging in speculative activities, hoarding goods, excessively increasing prices, spreading false information, smuggling, commercial fraud, and other deceptive behaviors;

h) Illegally using trade names, logos, trademarks, or trade indicators as prescribed by the Intellectual Property Law and violating commitments in contracts;

i) Continuing to operate the business of gasoline and diesel oil after the Certificate of Eligibility for Gasoline and Diesel Oil Business has been revoked;

k) Other violations prescribed in this Decree and other relevant laws.

5. Violations of traders dealing with gasoline and diesel oil services

a) Inspecting gasoline and diesel oil services without meeting the conditions prescribed in Article 18 or Article 19 of this Decree;

b) Changing the quality of gasoline and diesel oil or engaging in fraudulent acts regarding quantity and quality of gasoline and diesel oil during service implementation;

c) Engaging in other gasoline and diesel oil business activities contrary to the provisions of Clause 2 of Article 20 of this Decree;

d) Illegally using trade names, logos, trademarks, or trade indicators as prescribed by the Intellectual Property Law and violating commitments in contracts;

đ) Other violations prescribed in this Decree and other relevant laws.

Article 32. Handling Violations

1. A business entity engaging in petroleum trading that violates the provisions of this Decree shall be subject to administrative penalties or criminal prosecution, depending on the severity of the violation, in accordance with current laws.

2. Management officials and employees of petroleum trading business entities; civil servants and public officials who violate the provisions of this Decree while performing their duties shall be subject to disciplinary action, administrative penalties, or criminal prosecution, depending on the severity of the violation, in accordance with current laws.

Chapter V

IMPLEMENTING PROVISIONS

Article 33. Effective Date

1. This Decree takes effect from December 15, 2009.

2. The Government Decree No. 55/2007/NĐ-CP dated April 6, 2007 on petroleum trading; Decision No. 04/2009/QĐ-TTg dated January 9, 2009 of the Prime Minister on the establishment of a price stabilization fund for petroleum are hereby repealed.

3. Any previous regulations concerning the management of petroleum trading that conflict with the provisions of this Decree are hereby abolished.

Article 34. Transitional Provisions

1. Business entities engaged in petroleum trading that have been granted Export and Import Licenses or Certificates of Eligibility for Petroleum Trading prior to the effective date of this Decree are not required to reapply for such licenses or certificates.

2. New petroleum trading establishments must comply with approved planning schemes pursuant to the provisions of this Decree.

3. Existing petroleum trading establishments that do not conform to approved planning schemes must develop a plan to upgrade or relocate to ensure compliance with the planning scheme.

4. Based on economic and social conditions, and the practical experience of petroleum trading in Region 3 within mountainous and highland areas as defined by law, the People's Committee of provinces and centrally-administered cities may permit individual traders and defense fuel supply stations to act as retail agents for petroleum with facilities and scale appropriate to the local conditions of petroleum trading; other conditions must comply with the provisions of this Decree and related legal documents.

5. The Ministry of Industry and Trade shall take the lead, in collaboration with relevant ministries, sectors, and provincial and centrally-administered city people's committees, to determine the implementation timeline as stipulated in Clause 3 and Clause 4 of this Article, ensuring stable petroleum supply and meeting local petroleum demand.

Article 35. Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies, Chairpersons of provincial People's Committees under the central city shall be responsible for implementing this Decree./.