Price stabilization fund draws mixed reviews

Deputies of Vietnam’s National Assembly, the country’s highest legislative body, have proposed canceling the petroleum price stabilization fund due to inadequacies, state media reported. Petroleum traders in Vietnam contribute VND500 (US$0.03) per liter of gasoline and VND400 dong (US$0.02) per liter of oil products to the fund, which is managed by major wholesalers. However, some wholesalers are facing difficulties in using and managing the fund while the state-run Vietnam National Petroleum Corp. (Petrolimex), the country’s biggest petrol trader, has proposed that contributions to the fund be based on revenues. As of July 30, more than VND3.619 trillion (US$186.03 million) had been contributed to the fund and nearly VND1.05 trillion (US$53.97 million) has been used to offset traders losses to stabilize prices, said the Ministry of Finance. (October 4, 2010)