Fuel distributors want higher commissions as bankruptcy looms

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By Anh Minh September 15, 2022 | 7:56 p.m. PT

A customer pays for gasoline at a gas station in Thu Duc city in August 2022. Photo by VnExpress/Quynh Tran

Fuel distributors want a commission of 1,500 VND ($0.06) per liter instead of zero as mounting losses push them to the brink of bankruptcy.

“We invest billions of dong in a gas station but our current profits are lower than those of a grocery store,” one owner said Thursday during a meeting with business authorities.

The man, who runs a petrol station in Ho Chi Minh City, said: “If the commission continues to stay at zero, we run the risk of going bankrupt.”

Distributors are making this request because fuel retail commissions have been reduced to zero or near zero in recent weeks, and high import costs are not reflected in retail prices, which are now at their lowest levels. low this year.

A distributor with 11 service stations in HCMC said ever-changing fuel prices and overhead means they are selling at a loss.

He asked for a commission of 1,000 to 1,500 VND per liter to break even.

Commissions are now 550-900 VND for diesel and 50-100 VND for RON95 gasoline.

The Ministry of Industry and Commerce said this year that it had asked the Ministry of Finance four times to include the cost of inland transport in retail gasoline prices, but to no avail.

Bui Ngoc Bao, chairman of the Vietnam Petrol Association, said changes in distributor costs could only be reflected in retail prices every six months according to regulations, but prices have been very volatile in recent months. , and that’s why distributors make losses.

He said at least another VND400 must be added to distributors’ costs for them to break even.

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