Advance budget of 8,000 billion VND for the Petroleum Price Stabilization Fund

The Government has just issued Resolution 69 dated March 27, agreeing to advance payments to the Petroleum Price Stabilization Fund from the increase in central budget revenue in 2025 at the request of the Ministry of Finance.

At the same time, Prime Minister Pham Minh Chinh issued Decision 483, adding 8,000 billion VND to the 2026 budget expenditure estimate for the Ministry of Industry and Trade from the increase in 2025 central budget revenue to advance the Petroleum Price Stabilization Fund.

The decision clearly states the deduction, expenditure and use of the Petroleum Price Stabilization Fund according to the principles of publicity and transparency, limiting fluctuations in unusual increases in gasoline prices.

The Ministry of Industry and Trade is the focal point responsible for proposing advance expenditure needs for the fund, receiving budget funds and managing, inspecting and monitoring the spending situation.

This agency is assigned to develop and decide on plans to deduct and spend funds, depending on the level of fluctuations in gasoline prices. The management of the fund must aim to stabilize domestic prices and at the same time return the spent money to the budget when the market stabilizes. The Ministry must have price management scenarios, calculate usage time and set aside funds to repay the budget within a maximum of 12 months from implementation.

If the advanced budget is used up but the situation is still tense, the Ministry of Industry and Trade will evaluate the situation and promptly propose additional budget estimates for the advance. The Government also requires business traders to strictly comply with regulations on price stabilization, deduction, expenditure and use of funds in accordance with regulations and repay the funds advanced by the budget. Merchants are transparent about funds and retail prices.

These solutions are proposed in the context of continued tension in the Middle East, causing strong fluctuations in the domestic energy market. From the end of February until now, the domestic retail price of gasoline has had 11 operating periods, currently each liter of RON 95-III gasoline is 24,330 VND, diesel oil is 35,440 VND. Previously, there was a time when the price of these two types of fuel increased to nearly 34,000 VND and 40,000 VND per liter, respectively.

To stabilize the market, nearly a month ago, the operator decided to use the Petroleum Price Stabilization Fund 9 times with an expenditure of nearly 5,300 billion VND. Currently, this fund still has about 320 billion VND.

In addition to the stabilization fund tool, the Government also minimizes taxes (environmental protection, VAT, special consumption) to reduce pressure on fuel price increases.

In recent days, Prime Minister Pham Minh Chinh has called and sent official letters to leaders of many countries, and at the same time worked with ambassadors of countries in Vietnam, asking them to support oil sources and ensure energy security. For example, Vietnam has mobilized 4 million barrels of oil from partners, or requested access to Japan’s oil reserves…