HA NOI (VNS)— Petrol wholesalers yesterday gathered to make recommendations on an amended decision on fuel trading drafted by the Ministry of Industry and Trade.

At a meeting to adjust and supplement Decision 84/2009/ND-CP, the Viet Nam Petroleum Association proposed that traders be allowed to adjust up retail prices if the reference price increases by 3 per cent instead of 5 per cent as drafted by the Ministry of Industry and Trade.

Petrolimex chairman Bui Ngoc Bao said a fuel-price hike of 5 per cent was equal to VND1,000 per litre, which was significant.

This meant an increase of 3 per cent or VND400-600 was more rational and would be easier to get consumers to accept.

At the meet, the association also proposed two options for a petrol price stabilisation fund, including closing the fund.

The association said when wholesale traders were allowed to decide retail prices and people accepted them, the fund was unnecessary.

Furthermore, closing the fund would help cut and stabilise input prices and make prices more transparent. Also, if the current 30 day petrol stockpile was used effectively, it could be one of the best ways of stabilising prices.

The second option was to rename the fund the Financial Reserve Fund and place it under the control of the Prime Minister.

The association suggested if the fund continuously existed, fuel traders would deduct 0.5 per cent of their turnover or use a part of their pre-tax profits to source for the fund.

The fund was established in 2009 and has been used and kept by petroleum traders to offset loses because of fluctuations in market prices. It collects VND300-500 per litre on the retail price of petrol. — VNS