Prime Minister: Petroleum supply is still guaranteed for production and consumption

At a working session with the Energy Security Working Group on March 17, Prime Minister Pham Minh Chinh assessed that crude oil sources for domestic oil refineries are being maintained, while current and upcoming months’ gasoline supply is still guaranteed. Along with that, gasoline prices are controlled, closely following world prices.

“Petroleum and energy ensure production and consumption, minimizing negative impacts on people, businesses and the economy,” he said.

The Government leader’s comments were made in the context of the domestic petroleum market fluctuating strongly as the conflict in the Middle East escalated. Currently, gasoline and oil prices are 27-40% higher than at the end of February – the time before the Middle East conflict.

In recent days, the Prime Minister has called and sent official letters to leaders of many countries, and at the same time worked with ambassadors of countries in Vietnam to request support for Vietnam to ensure energy security. The operator also uses the gasoline price stabilization fund and tax adjustment to support fuel prices.

Delegates forecast that the Middle East conflict will continue to affect the global energy and petroleum supply chain. World oil prices may increase, affecting domestic supply and gasoline prices. Therefore, Vietnam needs a long-term solution to ensure the supply of petroleum for production and consumption.

Concluding the meeting, Prime Minister Pham Minh Chinh asked ministries and agencies to “firmly grasp the situation and respond flexibly”. The goal is to avoid shortages or disruptions in the production and supply chain of petroleum and energy. Authorities must also have solutions to prevent policy profiteering and disturbance of the situation, while increasing strategic reserves and diversifying markets and products.

He assigned the Ministry of Industry and Trade to have solutions to maintain stable operation of oil refineries, imported crude oil sources and soon deploy E10 gasoline. The Ministry of Finance is required to coordinate in price management, stabilization fund, anti-smuggling, and research on tax and fee solutions when oil prices fluctuate strongly.

In addition, the functional forces must increase inspection and strictly handle speculation, fraud, and false information. At the same time, relevant agencies must ensure balance of coal and gas sources for electricity production, and proactively plan when imported sources are interrupted. The Ministry of Foreign Affairs is required to promote international cooperation to ensure fuel supplies. Ministries and branches must also control food prices, provide credit support for energy businesses, and technological solutions to reduce dependence on fossil fuels.