Experts have argued that a Government decree issued Friday to lift state fixing of retail petrol prices in line with WTO commitments will not affect prices significantly.
A trade ministry expert said that though prices are now regulated by importers and not the government, no importers will collude to raise prices as the ministry monitors their import volumes, prices and profits.
The petrol enterprises have to regularly report figures to the ministry based on which authorities could prevent price hikes from adversely affecting customers. The ministry also has the influence to encourage firms to only lower prices when world prices drop, he added.
Another oil expert said the floating of prices will not initiate a price war to cut prices and win customers because all 11 oil importers are state-run and “they are not so silly as to intensely compete with on another”.
Of the 11, Petrolimex makes up 55% of market share. Another expert said Petrolimex is the “eldest brother” and other oil enterprises will simply base their prices on the giant firm.
Several large private petrol companies currently banned from importing the fuels are eagerly upgrading their facilities and scrambling to join the elite 11-strong group.
“We have storehouses, land, and everything. We are waiting for an import permit”, a private oil firm owner said.
Despite being one of Southeast Asia’s largest crude exporters, Vietnam which joined the WTO early this year, does not yet have its own refinery, and remains heavily dependent on petroleum product imports.
Last year’s oil subsidy bill was VND8-9 trillion (499 – 561 million US$).
Source: Thanh Nien
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