Decision No. 1635/QD-BTM of October 06, 2006, reducing selling prices of gasoline

DECISION

RE: REDUCING SELLING PRICES OF GASOLINE

THE MINISTER OF TRADE

Pursuant to Decree 29/2004/ND-CP dated January 16, 2004 by the Government detailing functions, tasks, powers and organization of the Ministry of Trade;
Pursuant to Decision 187/2003/QD-TTg dated September 15, 2003 by the Prime Minister of promulgation of the Regulations on trading of fuels;
Pursuant to determination of the Prime Minister on administration of selling prices of fuels in the final months of 2006 in Announcement 117/TB-VPCP dated August 9, 2006;
Pursuant to the recent situation of oil prices in the world market and upon on agreement with the Ministry of Finance,

HEREBY DECIDES:

Article 1. To require major business entities importing gasoline to reduce selling prices of gasoline by VND500 per litre from those said in Decision 1456/QD-BTM dated December 12, 2006 by the Minister of Trade on reduction of selling prices of gasoline; the new retail prices (including VAT) for gasoline at actual temperature are as the following:

- Lead-free RON-92: VND10,500 per litre

- Lead-free RON-90: VND10,300 per litre

- Lead-free RON-83: VND10,100 per litre

Prices of other kinds of gasoline are set by  major gasoline importers on the basis of actual selling prices of standard types of gasoline in the market and quality differences in compared to those types.

For localities far away from international ports accommodating oil cargo ships as said in Decision 0647/2004/QD-BTM dated may 31, 2004 by the Ministry of Trade, the prices can be no more than 2% higher than the aforesaid prices.

Article 2. Points of sales:

- Wholesales: Gasoline is delivered to buyer at provincial central storehouse;

- Retail: Gasoline is delivered to buyer at fuel pump stations

Article 3. Responsibilities of major gasoline importers, business entities and Departments of Trade/Trade – Tourism of provinces and cities under central direct management:

1. According to the Prime Minister’s guidelines, despite a VND500 reduction in selling prices of gasoline, fuel should still be saved as much as possible. Business entities are to consider to reduce cost prices of petroleum-based products as well as transport services on the basis of gasoline price reduction.

2. Major fuel importers are to check volume of gasoline in accordance with current practice before adjusting selling prices of gasoline in order to prevent wrongdoings and ensure normal trading activities. They are to be liable to the law for acts of violating regulations on gasoline prices of their affiliates and distributors.

3. Provincial Departments of Trade/Trade –Tourism are to coordinate with Departments of Finance/Finance and Pricing to check implementation of the selling prices of gasoline in their localities, quickly discovering wrongdoings and dealing with those within scope of their management in accordance with the law or report to higher levels for solution.

Article 4. The Decision comes into effect at 21:00, October 6, 2006. Previous regulations on selling prices of gasoline, which contradicts the Decision, are abolished.