VINACHEM

The petrol price stabilization fund is running out, with only VND55.5 billion left as of June 30 compared to VND756.4 billion on December 21, 2012, said the Ministry of Finance.

The ministry, citing reports from 12 wholesale companies paying to and using the fund, said that negative changes of global oil prices have made inroads into the fund.

Under the current practice, wholesale oil traders extract part of the selling prices of oil products for the fund, and can use a certain amount from the fund to compensate their selling prices when the global price surges. The fund is managed by wholesalers themselves at the supervision of central authorities.

During this year’s first half, oil wholesalers contributed roughly VND2.2 trillion to the fund, according to the finance ministry. However, during the period, these wholesalers have tapped a combined VND2.9 trillion from the fund, resulting in the balance dropping to only about VND55.5 billion as of June 30.

The ministry said the fund at certain oil traders was even deficit at end-June.

Some wholesalers still enjoyed a surplus fund as of June 30, such as Petrolimex posting VND201.7 billion, Military Petroleum Co. VND179.2 billion, Saigon Petro Co. Ltd VND51 billion and Thanh Le Import-Export Co. roughly VND56 billion.

Meanwhile, PetroVietnam Oil Corp. saw the highest deficit of nearly VND218.7 billion, followed by Petec Trading and Investment Corp. with a shortfall of VND146.2 billion.

Wholesale enterprises have made extractions from selling prices for the petrol price stabilization fund since the end of 2009 in accordance with Decree 84/2009/ND-CP, with a fixed value of VND300 for a liter/kilo of petrol or oil to be sold.

In the meanwhile, they have tapped the fund many times from April, 2010.

The highest tapping volume was from February 12 to February 24, 2011, with wholesalers allowed to use up to VND1,650 for a liter of petrol, VND2,300 for a liter of diesel oil, VND2,150 for a liter of kerosene and VND1,400 for a kilo of fuel oil.

At present, the tap rate is fixed at VND300 a liter of gasoline, VND200 a liter of diesel oil or kerosene and VND100 a kilo of fuel oil.

Without the price stabilization fund, local fuel price hikes must have been higher and more regular since 2010, the ministry said.

This is the first time the ministry has announced the fund balances at all involved entities. It plans to publicize the figures in the first month of every quarter so that companies and locals can supervise the management and usage of the fund as well as petrol price administration.

The announcement is what newly-appointed Minister of Finance Dinh Tien Dung promised when he assumed the position over a month ago. There are 15 fuel wholesalers in operation now, Dung’s ministry reports.