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Some industry experts and traders have long supported a shorter price cycle, saying it will solve the discrepancy between fuel prices in the domestic and international markets and be more in sync with fuel trading activities.

HANOI: Vietnam's Industry and Trade Ministry has proposed a new price mechanism to adjust fuel prices every five days instead of the current 10-day cycle, or possibly every day, to finally address a number of issues that has resulted in sporadic fuel shortages across the country in recent months.

Some industry experts and traders have long supported a shorter price cycle, saying it will solve the discrepancy between fuel prices in the domestic and international markets and be more in sync with fuel trading activities.

Nguyen Tien Thoa, formerly of the Valuation Vietnam Association, said the 10-day price cycle has shown a number of shortcomings and limitations in balancing the interests of fuel traders, retailers and consumers.

Shorter price cycles, three-to-five days at most, were only the first step in bringing domestic fuel prices to the same level as the international market, eliminating a delay that encourages some traders to hold onto their stocks to wait for higher prices.

Economist Vu Vinh Phu said the delay, at times, created a situation in which traders purchased fuel at higher prices but were forced to sell at a lower price point.

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In addition, retailers were also discouraged as their bonuses were slashed if prices stayed low.

It’s simply not possible for traders to sustain the current 10-day cycle as prices continue to fluctuate almost daily in the international market.

“We must start making the transition to a full market-driven mechanism, one in which prices can be adjusted every five days or even every day. It’s in the best interest of all stakeholders including traders, retailers and consumers,” he said.

A 10-day price cycle will just discourage traders from stocking fuel out of fear of financial losses, according to Phu.

Meanwhile, some voiced their concerns over letting go of all measures to manage fuel prices. — Viet Nam News/ANN

转载说明:本文转载自Sunbet。,

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