Can gas stations be retailed at a price higher than the price set by the State of Vietnam?
During the period after the Lunar New Year, the amount of gasoline sold is very small and some gas stations stop selling; causing a lot of frustration among the people. Up to the present time; gasoline prices increased to a record high; causing difficulties for the people; Some gas stations even sell retail prices higher than regulations. So are these acts legal? Today, LSX Lawfirm will give you an article about “Can gas stations be retailed at a price higher than the price set by the State of Vietnam?“, as follows:
Legal grounds
Decree 83/2014/ND-CP
Decree No. 99/2020/ND-CP
The State’s role in regulating gasoline
Pursuant to Clause 1, Article 38 of Decree 83/2014/ND-CP (amended and supplemented in 2018, 2021); petrol and oil selling prices are implemented according to the market mechanism; regulated by the State, in accordance with the evolution of the world petroleum prices and the socio-economic situation in each period.
Pursuant to Clause 3, Article 38 of Decree 83/2014/ND-CP; petrol and oil prices on the 1st of January; 11th, and 21st of every month.
- Firstly, For the operating period coincides with a day off, a public holiday according to the regulations of the State; the operating time is postponed to the next working day after the holiday; holidays.
- Secondly, The operating period coincides with the Lunar New Year; The operating time is postponed to the next operating period. In case the price of petroleum products has abnormal fluctuations; a great influence on socio-economic development and people’s life; The Ministry of Industry and Trade is responsible for reporting to the Prime Minister for consideration; decide the appropriate time to operate petrol prices.
Can gas stations be retailed at a higher price than prescribed by the State?
In some special cases; Gas stations can change retail prices lower or higher than prescribed but still within the framework of the law. As follows:
Gas stations are retailed at a lower price than prescribed
Pursuant to Clause 2, Article 38 of Decree 83/2014/ND-CP (amended and supplemented in 2018, 2021); based on the actual situation at the enterprise; petrol and oil wholesalers and petrol and oil distributors decide the retail price of petrol and oil (adult oil is the wholesale price); in their distribution system in accordance with the actual costs incurred at the enterprise and not higher than the operating price announced by the competent state agency.
Gas stations are sold at a higher retail price than prescribed
For areas far from ports, away from key warehouses, far from petrol and oil production facilities; if there are reasonable and valid (audited) actual costs incurred, leading to higher selling prices than operating prices; The main petrol and oil trader may decide the actual selling price in that area (notified to the Ministry of Industry and Trade) to cover the incurred costs but not exceed 2% of the operating price announced at the same time.
The main traders of petrol and oil; petrol and oil distributors are responsible for notifying the selling prices of the Ministry of Industry and Trade; The Ministry of Finance immediately after deciding on petrol and oil selling prices of enterprises.
Some penalties for gas stations
According to Clause 4, Article 35 of Decree No. 99/2020; the Government’s regulations on sanctioning administrative violations in the oil and gas field; petroleum and gas trading; The subject who violates the regulations on petrol and oil retail will be fined from 10 million VND to 20 million VND when he commits one of the following acts:
- Reducing the time of sale compared to the time of listing or compared to the time of the previous sale; without a legitimate reason or without notifying the competent state management agency according to regulations.
- No sales; stop selling goods without obtaining written approval from the competent state management agency or notifying the competent state management agency according to regulations.
- Reducing the number of goods sold compared to the previous time; without a legitimate reason or without notifying the competent state management agency according to regulations.
So; if gas stations arbitrarily suspend sales; without a legitimate reason or without notifying a competent state agency; or commit the act of reducing the number of goods (petroleum) sold compared to the previous time without a valid reason or without notifying the competent state management agency according to regulations; shall be administratively sanctioned according to the above provisions then.
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Related questions
According to Clause 2, Article 3 of Decree No. 83/2014/ND-CP, petroleum trading includes the following activities:
+ Export (petroleum, domestically produced raw materials and gasoline, imported raw materials), import, temporary import for re-export, border-gate transfer, processing for export of petrol and oil, raw materials;
+ Production and preparation of petrol and oil;
+ Distribution of petroleum in the domestic market;
+ Leasing warehouses, ports, receiving, preserving, and transporting petroleum.
The certificate of qualified petrol and oil retail stores shall be revoked in the following cases: The trader does not continue to conduct petrol and oil business activities for a period of one (01) month or more; traders go bankrupt according to the provisions of law; does not meet one of the specified conditions; traders repeatedly violate or re-violate regulations on ensuring the quantity and quality of petrol and oil circulating in the market…
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