>> Petroleum fund comes under scrutiny
>> Petrolimex accused of misusing $60 million in funds
The National Assembly (NA) Standing Committee has proposed abolishing the petroleum price stabilisation fund due to the lack of transparency in its operations.
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| Customers are paying an additional VND300-VND500 per litre of petrol despite varying petrol prices. |
According to Petrolimex, contributions to the fund must be based on petroleum trader revenues to ensure they make profits. Currently, this regulation is not applied.
Military Petroleum Company (Mipeco) said the fund has not yet resolved petrol price stabilisation either, but instead has helped a number of companies to take advantage of its capital to reduce their loans. This has created competitive advantages, leading to monopoly.
Early this year, Petrolimex was blamed for misusing VND1.2 trillion (USD57.6 million) worth of the petrol stabilisation funding to cover its loss.
According to the National Assembly Committe for Public Claims and Petitions, many voters have also recommended the fund removal, saying that since the fund became operational, customers are paying an additional VND300-VND500 per litre of petrol despite varying petrol prices.
However, the fund management and use as well as its benefits to customers are not clear.
The NA Standing Committee said the fund’s establishment does not follow the Ordinance on Prices. Article 6 of the ordinance stipulates regulations on price stabilisation, but not the establishment of a price stabilisation fund.
The committee has proposed the Government instruct the Ministry of Finance to review specific regulations and guiding instructions of the ordinance to amend and complement its documents.
On September 23, the ministry said it had cooperated with ministries and agencies to check petrol business activities and also supported the State Audit of Vietnam in checking the workings of the fund.
The petroleum stabilisation fund was established in 2009. Petroleum traders are allowed to collect VND300-VND500 for a litre of petrol they sell from the fund.
By July 30, 2010, the dealers contributed VND3.6 trillion (USD173 million) to the fund and received VND1.05 trillion (USD50.4 million) to stabilising their prices. The remainder has gone into the petroleum companies’ accounts.
