Decision No. 78/2008/QD-BTC of September 16, 2008, on reduction of selling prices of diesel oil and management mechanism for petrol and oil trading.

DECISION

ON REDUCTION OF SELLING PRICES OF DIESEL OIL AND MANAGEMENT MECHANISM FOR PETROL AND OIL TRADING

THE MINISTER OF FINANCE

Pursuant to the Government's Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government's Decree No. 170/2003/ND-CP of December 25, 2003, detailing the implementation of a number of articles of the Ordinance on Prices;

Pursuant to the Government's Decree No. 75/2008/ND-CPof June 9, 2008, amending and supplementing a number of articles of Decree No. 170/2003/ND-CP;

Pursuant to the Government's Decree No. 55/2007/ND-CP of April 6, 2007, on petrol and oil trading;

Pursuant to the Government Office's Notice No. 253/TB-VPCP of September 15, 2008, on conclusions of Standing Deputy Prime Minister Nguyen Sinh Hung on management of petrol and oil trading in the coming time; After reaching agreement with the Ministry of Industry and Trade,

DECIDES:

Article 1.- The relail prices (inclusive of value-added tax) of some types of standard diesel oil at actual temperature in localities near ports of import (zone 1) are set uniformly nationwide as follows:

- The retail prices of the above types of diesel oil are applicable to consumers buying diesel oil at petrol and oil retail shops. The selling price of diesel oil for other consumers (not buying diesel oil at retail shops) shall be set on the principle that it is lower than the retail price and higher than the selling price for general agents and agents. The selling price of diesel oil for general agents and agents is the retail price minus dealer commissions under the Ministry of Trade's (now the Ministry of Industry and Trade's) Decision No. 676/2004/ QD-BTM of May 31, 2004.

- The selling price of diesel oil in localities far from ports of import (zone 2) must not be more than 2% higher than the selling price in zone 1. Localities in zone 1 and zone 2 shall comply with the Ministry of Trade's (now the Ministry of Industry and Trade's) Decision No. 674/2004/QD-BTM of May 31, 2004.

- The price of diesel oil of types other than those prescribed above shall be decided by petrol and oil importers, exporters, producers or processors based on the actual sale prices of the above standard oil on the same market and their quality difference with the above oil.

- Sale places:

+ Wholesale: Goods are delivered to buyers on their vehicles in provinces and cities depots;

+ Retail sale: Goods are sold to buyers on their vehicles at filling stations and retail shops in provinces and cities.

Article 2.- Management mechanism for petrol and oil trading:

a/After 11 hours on September 16. 2008, selling prices of diesel oil decided by petrol and oil importers, exporters, producers or processors are subject to the market price mechanism under the Government's Decree No. 55/2007/ND-CP of April 6, 2007, on petrol and oil trading; the Government's Decree No. 75/2008/ND-CP of June 9, 2008, amending and supplementing a number of articles of Decree No. 170/2003/ND-CR detailing the implementation of a number of articles of the Pricing Ordinance, and the Ministry of Finance's regulations on the mechanism for management and control of petrol and oil selling prices.

b/ Petrol and oil exporters, importers, producers or processors may continue deciding on selling prices of petrol, kerosene and mazut under Article 3 of the Finance Ministry's Decision No. 57/2008/QD-BTC of July 21, 2008. on selling prices of petrol and oil of different categories.

Article 3.- Responsibilities of producers, traders and concerned organizations:

a/ Producers and traders shall strictly follow the Prime Minister's direction: to continue taking measures to save costs, especially those for petrol and oil. in order to lower production costs. Petrol and oil exporters, importers, producers or processors shall continue saving corporate management costs.

b/ Petrol and oil exporters, importers. producers or processors shall review their oil and petrol distribution networks according to current regulations before adjusting selling prices to ensure smooth trading and prevent negative practices.

c/ Petrol and oil exporters, importers, producers or processors shall take joint responsibility before law for their distribution networks' violations of selling prices and acts of trade fraud in petrol and oil trading.

d/ Other petrol and oil exporters, importers, producers or processors shall import petrol and oil in accordance with their schedules and make circulation reserves according to regulations to ensure sufficient supply of petrol and oil to meet the domestic demand in all situations.

e/ Provincial/municipal Finance Services shall coordinate with provincial/municipal Industry and Trade Services and Market Control Sub-Departments in inspecting the application of selling prices in their localities associated with the assurance of goods quality and units of measurement corresponding to selling prices, promptly detecting and handling violations within their powers according to current regulations or reporting to competent agencies for handling according to law.

Article 4.- This Decision takes effect as of 11 hours on September 16. 2008. and replaces the retail prices of diesel oil under Decision No. 57/2008/QD-BTC of July 21, 2008. on selling prices of petrol and oil of different categories. All previous provisions which are contrary to this Decision are annulled.

Article 5.- The director of the Office of the Ministry of Finance, the director of the Price Control Department and heads of concerned organizations shall implement this Decision.