The operating period on August 22 ended the chain of declines in 5 sessions of price management when gasoline prices were kept unchanged and oil prices increased.
No Trang Long Street, Binh Thanh District, Ho Chi Minh City on the afternoon of August 22 – Photo: NGOC PHONG
Through monitoring the appropriation and spending of funds over the years, I found that the management is quite arbitrary. This fund is actually taking money from consumers to offset future prices, so consumers do not benefit at all.
Assoc. Prof. Dr. PHAM THE ANH
Many analysts believe that gasoline prices on August 22 could have fallen if they stopped deducting the Petroleum Price Stabilization Fund (QBO). But the executive agency has continued to set aside for the fund when the price is trending up again.
People fill up petrol at a gas station on
Gasoline price will decrease if fund deduction is stopped
According to the operating agency, in this period, the base price of petroleum products increased, but in order to support people’s lives and production and business activities of enterprises, the inter-ministerial department decided to reduce the provisioning rate. BOG for petroleum products.
However, deductions are still made for BOG with E5RON92 gasoline at 451 VND/liter, RON95 gasoline at 493 VND/liter, diesel oil at 250 VND/liter, kerosene 400 VND/liter and fuel oil at 641 VND/kg. Also, don’t just use BOG.
Recently, the Ministry of Finance has said that this is an appropriate time to consider and evaluate to remove the petrol QBO tool so that petrol prices move in accordance with market signals.
From the price adjustment period on July 1 until now, the management agency has continuously made a deduction to BOG at a high rate for the reason of creating a surplus source for the fund after many key enterprises suffered a severe negative.
Time to quit BOG?
Talking to Tuoi Tre , Assoc. Prof. Dr. Pham The Anh, chief economist of the Institute for Economic and Policy Research, said that QBO is seen as a “regulatory lake” for prices, but the role of this fund is quite obscure, especially at this time. If the price of petrol increases, the fund will be negative by thousands of billion dong.
“In my opinion, QBO should be abandoned. The fund does not meet the requirements while the management and supervision of the fund is complicated,” said Mr. The Anh, emphasizing that this fund is actually taking money from consumers to compensate. prices in the future so consumers do not benefit at all.
In order to stabilize the domestic gasoline price, the fund manager must forecast the world petroleum price, for example, if the price drops to 14,000 – 15,000 VND/liter, then it should be set aside to fund the fund and spend it when the price increases. However, Mr. The Anh said that the actual setting up and spending of funds was quite emotional.
For example, there are times when the price of petrol increases but still deducts the fund to increase the domestic gasoline price or there is no more fund to spend that should be used in this case.
In addition, recently, the Government reduced the environmental protection tax to cool down the price of gasoline, but the price management agency deducted the BOG when it had just reduced a little tax. It is true that there are many reasons to do so, but this makes domestic gasoline prices fall more slowly than world prices.
According to Mr. The Anh, when the decrease is slow, it will make businesses continue to increase the prices of goods for life, which is very difficult to reduce when it has increased.
An expert in the petroleum segment does not deny the role of BOG in helping to prevent price shocks at some point. The deletion needs to be carefully calculated, on the basis of a scientific review.
However, in fact, when the price increases, people have not seen much benefit from the fund, but when the price has a chance to decrease, BOG still sets up and in many periods, the deduction level of up to 3,000 – 4,000 VND/liter is not appropriate. distort gasoline prices.
Assoc. Prof. Dr. Pham The Anh noted that with the removal of QBO, it is not advisable to operate gasoline prices on a 10-day cycle because it poses risks to businesses when importing at high prices and selling at low prices. On the contrary, there are times when businesses benefit from low import prices while domestic prices have not decreased immediately.
If the domestic gasoline price regulation cycle is reduced to 5-3 days, it will reduce risks for businesses and consumers, and also buy gasoline at prices closer to the world market.