Petroleum businesses lament ‘the more they sell, the more they lose’

, Petroleum businesses lament ‘the more they sell, the more they lose’

Many petroleum retailers say that, with the current discount of 100-150 VND/liter and the scarcity of supply, the more they make losses.

Mr. Do Khanh – owner of a petrol and oil retail agent in Hanoi said that the discount rate for petrol and oil is currently 100-150 VND/liter while the costs of transportation, warehousing, staff, electricity and water. .. is high, so receiving gasoline at the warehouse suffers a heavy loss.

Specifically, transportation costs are usually 100-200 VND/liter, staff costs are 300-400 VND/liter, operating costs are 200-300 VND/liter. Thus, the total cost is 600 – 900 VND/liter.

“ If the discount rate is 600-900 VND/liter, agents like us will only break even and make no profit. As for the current discount rate of 100 – 150 VND / liter, even on August 25, the discount rate is only 80 VND / liter, dealers will suffer heavy losses. The more agents that sell, the more they lose , “said Khanh.

Petroleum businesses say 'the more they sell, the more they lose' - Photo 1.Petroleum businesses say 'the more they sell, the more they lose' - Photo 1.

Many petrol station owners lamented losses due to scarcity of goods and low discounts. (Illustrated image)

According to Mr. Khanh, petroleum retail businesses are in a difficult position when the supply is cut off. If his agent can get gasoline to the store, he will be negative 150 VND/liter for transportation from the warehouse in Hai Phong, not to mention the cost of labor, electricity, water… Especially, if he wants to import goods, Mr. Khanh must Notice 2 days in advance but not sure of stock.

Similarly, Mr. VT – owner of another petroleum business in Hanoi also shared that retail businesses that want to import goods can still have them, but they have to spend an extra 300-400 VND/liter for petrol and nearly 3,000 VND/liter for petrol. with oil when purchased from key traders.

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“ Even though we know it’s a loss, we still have to hold on to keep our business. Moreover, retail stores still have to try hard to sell because the authorities do not allow them to stop operating. Now I can buy as long as I can sell it, until there is no source, I have to close it. From the beginning of August until now, the store has lost several million dong every day, ” shared Mr. VT.

According to this person, the supply of petroleum is difficult because recently 7 companies have been deprived of the right to do import and export business, the “subsidiary” stores of these companies have to find their own sources of goods. Because there is no contract, the “child” stores cannot buy goods from other focal units.

On the Facebook page of the Petrol Forum recently appeared a series of shares with the content “all retail stores simultaneously applied for a temporary break from selling to the Department of Industry and Trade”; “embracing difficult goods”, “dealers cannot buy goods”; “0 dong discount, negative discount”…

According to some opinions, most of the business shops are concerned that if the announcement of the closure is not timely reported to the authorities, they will not only be inspected and sanctioned but also lose customers… Therefore, there are The unit sadly accepts to buy at a higher price and sell at a loss.

The leader of a key enterprise in the South also acknowledged that the number of petroleum importers decreased, causing the supply to traders, distributors and retailers to be affected. In addition, the world gasoline prices fluctuated, so the wholesalers also limited imports. Currently, this business only imports enough goods to supply its system.

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He also said that the main importers also suffered losses, so the wholesale price was forced to be higher than the retail price from 2,500 – 2,700 VND/liter, or reduced imports, so agents had to accept. “negative discount” or no purchase.

Recently, Mr. Tran Duy Dong, Director of the Domestic Market Department, signed a document to the key traders and petrol and oil distributors. Accordingly, in order to ensure the supply to meet the market demand, key enterprises and distribution traders must actively source goods and have an import plan to ensure adequate supply of petrol and oil to the market, without causing disruption. segment of petroleum supply in the business system.

This document also requires maintaining sales activities at petrol and oil retail stores of the enterprise and providing enough goods for retail stores of the system.

In the report on the situation of the first 7 months of this year, the Ministry of Industry and Trade said that the domestic petroleum market has had many fluctuations in recent years. The domestic supply was affected by the drastic reduction of production capacity by Nghi Son refinery and the failure to supply enough petroleum output as committed.

Meanwhile, the source of petroleum from imports faced difficulties because of the sharp increase in prices and great competition when the supply was interrupted due to the armed conflict between Russia and Ukraine.

According to the report of the Vietnam Oil and Gas Group, the petroleum production plan of two domestic oil refineries including Nghi Son and Binh Son in the last 6 months of the year is: In the third quarter, it is expected to produce 3.9 million m3. accounting for 72% of total demand) and the fourth quarter is expected to produce 4.4 million m3 (accounting for 80% of total demand).

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Source: Cafebiz

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