Draft decree aims to curb primary petroleum distributors' price dominance
The proposed amendment to petroleum business decree would allow both primary and secondary distributors to set fuel prices independently, a move the Ministry of Industry and Trade says will prevent any single group from dominating the retail market. Draft amended decree allows fuel businesses to set, announce retail prices
A new decree is being drafted to curb the excessive power held by primary petroleum distributors in the retail market. The Ministry of Industry and Trade argues this amendment will prevent any single entity from monopolizing fuel prices. Deputy Director Nguyen Thuy Hien explained at a press briefing on October 7 that the proposed changes will foster competition and prevent primary distributors from completely controlling retail prices.
The draft decree does not grant exclusive price-setting authority to primary distributors, but instead allows both primary and independent secondary distributors to set their own selling prices. This will create a mechanism that drives price competition among businesses. The draft also aims to simplify the petroleum distribution network by reducing the number of intermediary tiers from three to two.
According to calculations, over 10,500 distributors would be eligible to participate in the market and independently set fuel prices. Primary distributors will have to compete with secondary distributors, especially in areas where secondary distributors operate their own networks. The Ministry of Industry and Trade incorporated feedback from the public to add provisions addressing anti-competitive agreements and unfair trade practices.
The finalized draft decree is being prepared by the ministry to enhance market orientation, reduce intermediary steps, and grant enterprises greater autonomy over pricing.
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