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

The Ministry of Industry and Trade is proposing a new decree to regulate gasoline prices. Under the proposed draft, businesses will calculate their own retail prices based on the 7-day average world price announced by the State. This replaces previous decrees on petroleum business that set a base price for retail gasoline prices, which served as a ceiling for businesses to determine their own retail prices within the system. However, this process required businesses to wait for the base price announcement from the State management agency before setting their prices, leading to a lack of market-driven pricing.

The Ministry believes that the current mechanism for managing gasoline prices does not align with market principles. As a result, they are proposing that the State not 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 to consumers 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 a competitive environment for gasoline pricing and help traders and regulators avoid periodic calculation and publication of costs.

Furthermore, the proposed decree includes regulations related to the Price Stabilization Fund and warehouse use, aiming to maintain stability in 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. Overall, this decree aims to streamline the process of setting gasoline prices, promote competition in the market, and ensure transparent and efficient pricing practices within the industry.

By Sophia Gonzalez

As a content writer at newsgreg.com, I am dedicated to crafting engaging stories that captivate our readers. With a knack for turning complex topics into accessible and compelling narratives, I weave words together to inform and inspire. My passion lies in delivering accurate and thought-provoking content that keeps our audience informed and entertained. From breaking news stories to in-depth features, I strive to bring a fresh perspective to every piece I create. Join me on this journey of exploration and discovery through the power of words at newsgreg.com.

Leave a Reply