PM urges to control commodity prices after gasoline prices plummet

The dispatch requested the price management steering committee, ministers, heads of the ministerial-level agencies, and chairpersons of people's committees in provinces and cities to continue promoting the management of prices and stabilize prices of goods and services, essential services that affect the consumer price index and affect people's lives, production and business activities after the sharp drop in gasoline prices.

Additionally, the Prime Minister requested to closely monitor market developments for prompt implementation of solutions to ensure the balance of domestic supply and demand, stabilize prices, and prevent shortages, hoarding, speculation, and real estate price increase.

Regarding items directly affected by petrol and oil prices such as passenger transport services, freight transport, and logistics, the Prime Minister requested the Minister of Transport to coordinate with chairpersons of people's committees in provinces and cities to strengthen their inspection of the enterprise's price declaration to assess the price adjustment in accordance with the fluctuations of input factors, especially the cost of petrol.

In case it is possible to reduce the price, responsible agencies should ask businesses to declare the discount soon. Moreover, inspection teams ought to check the observance of listed prices and service fees as per businesses' listed prices and strictly punish those announcing unreasonable prices or adding additional non-price revenues to collect higher prices than the declared or listed price.

For essential goods and services, which are indirectly affected by gasoline prices, have an impact on the consumer price index and affect people's lives, production, and business activities of enterprises, Prime Minister Chinh requested to closely monitor market price movements, take appropriate management and price stabilization measures by increased inspection to observe people’s abiding by the law on prices. Inspectors must issue fines on those taking advantage of the situation to raise prices unreasonably.

As for the price of pork and animal feed, the Prime Minister asked the Minister of Agriculture and Rural Development to focus on promoting production, breeding, re-herding, processing, regulating, and ensuring supply to stabilize prices. Furthermore, the Ministry must carry out epidemic prevention work and have a solution for appropriate and sustainable re-herding and step up the production of breeding animals to fully meet domestic demand in the immediate and long term. Last but not least, the Ministry should pay attention to disintermediation to perfect the distribution system, wholesale, and retail efficiently.

For textbooks, the Prime Minister assigned the Minister of Finance to coordinate with the Minister of Education and Training in directing the continued receipt and review of price declarations in accordance with the present law. Publishing houses were asked to continue to review and implement cost reduction measures to further reduce prices.

For petroleum products, the Minister of Industry and Trade is responsible for directing continued monitoring of the world price situation, flexibly using the petrol price stabilization fund tool to have an appropriate plan to control the domestic petrol price, strictly handling the acts of speculation and hoarding. The Minister of Finance shall report to the Government on the plan to adjust the excise tax and value-added tax on petrol and oil.

On the afternoon of August 1, the Ministry of Industry and Trade said that in the third quarter of 2022, the petroleum production plan of two domestic oil refineries including Nghi Son and Binh Son is expected to be 3.9 million cubic meters accounting for 72 percent of the total demand.

It is scheduled that the two refineries will produce 4.4 million cubic meters accounting for 80 percent of total demand in the fourth quarter of 2022. Currently, both factories are operating at maximum capacity. For instance, the Binh Son Refinery and Petrochemical Plant is expected to operate at 105 percent capacity in the last six months of the year to supply petroleum to the market.