VINACHEM

The Government has increased the interval between two consecutive fuel price increases from at least 10 to at least 15 days.

Thenew decree on the petrol business, which contains the regulation andregulates fuel prices in line with State-managed market mechanisms,replaces Decree 84/2009/ND-CP and takes effect on November 11.

Thedecree also states that fuel traders will be allowed to unilaterallyraise fuel prices if the rate of increase is below three per cent ofcurrent retail prices, but they must report the increase to theMinistries of Finance and Industry and Trade. The rate allowed for aunilateral increase in Decree 84 is 7 per cent.

If the increase inrates is between 3 and 7 per cent, petrol wholesalers must submitdocuments on the price fluctuations of elements which make up petrolprices, as well as the anticipated increases, to the two ministries forreview and approval.

The rate increase that requires the ministries' review and approval in Decree 84 is 7 to 12 per cent.

Thetwo ministries must reply about the increases and use of the fuel pricestabilisation fund, if necessary, to petrol wholesalers within threeworking days from receipt of the required documents. If they fail to doso within three working days, the wholesalers may raise fuel prices butnot exceeding seven per cent.

Fuel price increases exceeding 7 percent, or increases with significant impact on the country'ssocio-economic development and the people's standard of living, must bereported to the Prime Minister for review and approval. The rateincrease that requires the Prime Minister's review and approval inDecree 84 is 12 per cent.

The new decree also sets no limits onthe number and rate of fuel price cuts, as well as intervals betweenconsecutive price cuts.

The decree states that the Ministry ofIndustry and Trade is reponsible for providing updates on world fuelprices, including base and retail prices, and the use of the fuel pricestabilisation fund on its website.

The decree also says theMinistry of Finance will supervise petrol and oil pricing, as well asthe extraction and use of the fuel price stabilisation fund ofwholesalers.

Petrol wholesalers must publicise on their websitesor on mass media the current petrol retail prices, extraction and use ofthe fuel price stabilisation fund and audited financial reports.