Petroleum businesses may charge a maximum rate of 20%, as suggested.

Market-Driven Gasoline Pricing: The Proposed New Decree by the Ministry of Industry and Trade

The Ministry of Industry and Trade is proposing a new decree to regulate gasoline prices, which suggests that businesses calculate their own retail prices based on the 7-day average world price announced by the State. This draft replaces previous decrees on petroleum business and was consulted by the Ministry from April 1, following the first draft.

Currently, the State sets a base price for retail gasoline prices. However, this process requires businesses to wait for the base price announcement from the State management agency before setting their prices, leading to a lack of market-driven pricing. The Ministry of Industry and Trade believes that the current mechanism for managing gasoline prices does not align with market principles.

The proposed decree aims to streamline the process of setting gasoline prices by allowing businesses to calculate their own retail prices based on certain factors such as world oil prices and fixed costs. The Ministry offers two options for businesses to calculate their costs and profit norms: Option 1 involves adding a fixed amount to the retail price, while Option 2 adjusts the percentage based on fluctuations in world gasoline prices.

The draft includes regulations related to the Price Stabilization Fund and warehouse use, aiming to maintain stability in the fund and ensure efficient distribution practices. The Ministry will also monitor changes in costs and profits of enterprises and report any significant increases to the Prime Minister for consideration and adjustment. Overall, this proposed decree aims to promote competition in the market, ensure transparent pricing practices within the industry, and maintain stability in fuel markets.

In conclusion, this new decree is aimed at promoting competition in gasoline pricing while ensuring transparency and efficiency in pricing practices within the industry. By allowing businesses to set their own retail prices based on certain factors such as world oil prices and fixed costs, this proposal aims to create a more market-driven approach to gasoline pricing that benefits both consumers and traders alike.

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