This is the direction that Minister of Industry and Trade Nguyen Hong Dien thoroughly grasped during his visit, New Year greetings and inspection of the petroleum supply situation at the Military Petroleum Corporation and the Petroleum Company Region I (under the Vietnam National Petroleum Group) on February 6, 2024 (ie 26th of Lunar New Year).
Determining responsibilities in ensuring the supply of gasoline to the people
Reporting at the working session with the delegation of the Ministry of Industry and Trade, Colonel Nguyen Trong Uy – General Director of the Military Petroleum Corporation said that with gasoline depots with a total capacity of 150,000 m3 and 150 gasoline stations across the country, in 2023, in the context of the world and domestic economy facing many difficulties and challenges due to many reasons, the Military Petroleum Corporation always determines and is fully aware of the responsibilities and tasks of soldiers on the economic front, contributing to ensuring energy security according to the targets assigned by the Government; coordinating the development of local socio-economy, especially meeting the requirements of people in remote, isolated areas with particularly difficult economies.
Determined to ensure adequate fuel supply, implement people’s livelihoods, and energy security in the area, at a time when the supply conditions in the Northern region were insufficient, the weather was unfavorable, and it was impossible to access transportation by waterway, the Corporation mobilized means of transport by road from Da Nang to Hanoi despite incurring large costs, to ensure timely response to people’s needs. The total source of implementation of the Corporation in 2023 reached 747,000 m3, reaching 111% of the annual plan and 73,000 m3 higher than the total source assigned (674,000 m3).
To successfully achieve the goals set for 2024 and the following years, the leaders of the Military Petroleum Corporation hope that competent authorities will consider and propose to the Government to agree to increase the charter capital of the Corporation to suit the actual operating situation; at the same time, there will be appropriate capital and fee support mechanisms and policies to ensure that petroleum reserve activities are carried out in accordance with regulations, contributing to ensuring the country’s energy security.
Proactively create sources early and from afar
For the Vietnam National Petroleum Group (Petrolimex), Petrolimex General Director Dao Nam Hai said that in 2023, the Group has exceeded its business targets. The Group’s output reached a record of 14.4 million m3, an increase of 4% compared to 2022, of which domestic sales output increased by 7%. The Group’s consolidated revenue reached VND270,000 billion, making it one of the enterprises paying the highest taxes and state budget in the country. Pre-tax profit reached VND3,432 billion, an increase of more than 7% compared to 2022. The average income of employees has improved significantly throughout the Group.
In particular, Petrolimex has ensured a leading and consistent role in all situations to supply gasoline to the entire economy and people, businesses in accordance with the direction of the Government, Prime Minister and Ministry of Industry and Trade in 2023; exemplary, pioneering in strictly complying with legal regulations related to gasoline trading.
In 2024, with the spirit of early and remote preparation, Petrolimex has planned to create sources and develop plans, scenarios, conduct bidding and offer from November 2023, thereby basically completing the signing of long-term contracts for the first 6 months of 2024 with a total output equivalent to 68% of the total planned amount of gasoline and oil consumed for the whole year.
The Group has also proactively negotiated early with 2 oil refineries to create maximum domestic sources, ensuring flexibility and quick response when unexpected situations occur. Response scenarios are specifically built, especially before, during and after Tet, on the basis of referring to the unusual situations of 2022 to organize timely operations.
Petrolimex’s imported gasoline output increased by 10% compared to the 2023 Lunar New Year and increased by 9% compared to the total average minimum monthly allocation allocated by the Ministry of Industry and Trade, even with reserve goods, ensuring adequate gasoline supply for the economy in all situations. Mobilizing the maximum 24/7 operating infrastructure system, organizing production and business throughout Tet, from water transport to receiving at the port, processing goods at the warehouse, exporting goods, etc.
In addition, Petrolimex has doubled the number of vehicles ready to import goods from Nghi Son and Binh Son warehouses, and is proactively working with the Department of Transport, the Department of Industry and Trade of Hanoi and Ho Chi Minh City to register gasoline transport vehicles to be allowed to run during the day during Tet, ready to supply to people and businesses.
To realize these contents, Petrolimex recommends that the Ministry of Industry and Trade consult with Hanoi and Ho Chi Minh City. Ho Chi Minh City to facilitate licensing for vehicles running during the day; organize inspections and supervise the implementation of the total source allocation of key traders nationwide, ensuring stable and long-term sources in all situations. In addition, Petrolimex proposed that ministries and branches review, complete and soon issue technical regulations and standards related to petroleum products on the market.
“In any situation, there must be no shortage of petrol and oil”
At the meeting with the units, Minister Nguyen Hong Dien once again emphasized that petrol and oil are strategic commodities, not only having economic significance but also important national defense and security significance, affecting political security and social order and safety. Therefore, the Government and the Ministry of Industry and Trade always pay attention and closely direct the provision of this commodity to people and businesses.
Highly appreciating the efforts of the Military Petroleum Corporation and the Vietnam National Petroleum Group, the Minister affirmed that the units have promoted the role of state-owned enterprises, performed production and business tasks associated with political tasks, seriously implemented and exceeded the total allocated resources, making important and positive contributions to the supply of energy in general and petrol and oil in particular for the whole country in the context of global supply disruption and difficulties. The Minister welcomed Petrolimex’s development of scenarios to respond to specific situations based on the worst-case scenario of 2022.
To continue the achieved results, ensure the supply of gasoline to serve the production, business and consumption needs of people and businesses, Minister Nguyen Hong Dien requested units to:
Firstly, organize and effectively implement the plan to supply gasoline before, during and after Tet, encourage workers to arrange shifts to be ready to supply promptly, 24/7 to people and businesses. Prepare plans to increase the mobilization of supply to the market during peak times if necessary, especially in key areas such as Hanoi, Ho Chi Minh City or the Southeast provinces, localities with developed industry and trade services, high traffic frequency and volume, and high demand for gasoline during Tet.
“In any situation, there must be no shortage of gasoline for production, business and people’s lives, especially before, during and after Tet,” the Minister directed.
In particular, for key areas such as Hanoi, Ho Chi Minh City or the Southeast provinces, provinces with developed industry and trade services, the frequency and volume of people traveling is very large, the demand for gasoline during Tet is very high. Therefore, comrades must not only prepare scenarios and plans to ensure the supply of iron and steel for retail outlets in their system. But at the same time, they must be ready to carry out the political task when the Ministry of Industry and Trade has only 34 state-owned enterprises, corporations and state-owned enterprises to carry out this task in the most impartial way and it is also the duty of comrades, not just a requirement from the Ministry or the Government.
Second, there is a strategy to develop the network, expand the scope of operations, improve supply capacity by opening more gas stations in locations across the country, increase imports to increase reserves, …
