At the conference of Ministry of Industry and trade, Chairman of Petrolimex has proposed allowing corporation a full authority on deciding periodic prices based on the ceiling price set by ministries. Functional agencies to intervene if prices exceed the ceiling.

According to Bui Ngoc Bao, Chairman of the corporation: In the past year, petrol prices were uncertainty. Despite lower crude oil prices in the world market but Petrolimex still imported petroleum products with the highest prices so far. Compared with 2008, diesel prices increased by 40% and gasoline prices rose 17%.

Mr Bao said 2011 is the year has the least adjustment on retail fuel prices in the domestic market. Following the Resolution No 11, the Government and inter-ministerial have been operating to up and down the fuel price in order to control the inflation. Therefore, under Decree 84 on petroleum business, it should be more than 11 times of adjustment to meet the actual market price but it adjusted to up and down only three times.

Total turnover in 2011 of corporation was VND177,000 billion, tax payment was VND24,000 billion; lossed VND2,500 billion, included losses from exchange rate difference was VND 1,500 billion.

Facing the fluctuations of the world market, the board of petroleum industry predicted crude oil price may range at USD97 a barrel in 2012, the same price as 2011, but pressures are going to increase.

For business, Petrolimex recommented the Ministry of industry and Trade to allow corporation accounting entirely the corporation instead of accounting separately between parent company and subsidiaries. The characteristic of petrol is following the consistent system, so corporation need an amendment for consistent accounting.

A representative of Petrolimex also proposed allowing company a full decision on the periodic prices that based on ceiling prices set by inter-ministries, if it exceeds the ceiling price, the functional agencies will intervene.

At the conference of Ministry of Industry and Trade, Prime Minister Nguyen Tan Dung also indicated his viewpoint about petrol price should be operated following the market mechanism. He asked Ministry of Industry and Trade to review the provisions on period of time for price adjustment, stabilization fund regulation.

"Be transparent both costs and retail prices for citizens", The Prime Minister said.

Source: Xangdau.net