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

The Ministry of Industry and Trade is seeking to replace a previous decree on petroleum business with a new one that aims to regulate gasoline prices. Under current regulations, the State sets a base price for retail gasoline, which serves as a ceiling for businesses to determine their own prices. However, this process requires businesses to wait for the base price announcement from the State management agency before setting their prices, leading to market-driven pricing being hindered.

The Ministry believes that this mechanism does not align with market principles and is therefore proposing that the State no longer regulate gasoline prices but instead announce the average world price and certain fixed costs. Businesses can then calculate their maximum selling price based on these factors and their own expenses and profit norms, with the retail price not exceeding this maximum level.

The draft 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 Ministry believes that allowing businesses to set their own prices will promote competition in the market and help traders and regulators avoid periodic calculation and publication of costs.

Furthermore, the draft includes regulations related to the Price Stabilization Fund and warehouse use, aiming to maintain stability within 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.

In conclusion, this proposed decree seeks to streamline gasoline pricing practices by promoting competition in the market while ensuring transparent and efficient pricing within the industry.

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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