Petrol price journey in 2021
In 2021, although the world in general and Vietnam in particular have to strain themselves against the Covid-19 pandemic, many production activities Export and travel were disrupted, but gasoline prices did not decrease because of that. In 2021, gasoline prices in Vietnam had 16 price increases, more than 3 times higher than the number of reductions. Therefore, by the end of 2021, the retail price of gasoline has increased by more than 41% compared to the end of 2020.
If at the end of 2020, the price of E5RON92 gasoline is at 15,518 VND/liter, RON95 gasoline. is 16,479 VND / liter, diesel is 12,376 VND / liter, kerosene is 11,188 VND / liter, madut oil is 12,272 VND / 1kg, after adjusting on December 25, the retail price of gasoline in the country will increase in 2021. strong compared to 2020. With gasoline E5RON92 up to 22,550 VND/liter, RON95 gasoline is 23,295 VND/liter, kerosene is 16,518 VND/liter, diesel oil is 17,579 VND/liter, madut oil is 15,745 VND/kg.
At the end of 2021, gasoline prices have 24 price adjustments. For gasoline, there are 16 price increases, 5 decreases and 3 times the retail price remains the same. Each liter of RON95 gasoline costs another VND6,816 in 2021; E5RON92 gasoline also increased by VND 7,032 compared to 2020.
Diesel and kerosene oil had 14 increases, 7 decreases and 3 times the operator kept the selling price unchanged. In total, each liter of diesel costs an additional VND 5,203; kerosene is 5,330 VND. As for madut oil, there are 12 increases, 8 decreases and 4 stays at the same selling price, totaling an increase of 3,473 VND per kg in the past year.
In 2021, the price of RON95 gasoline has an upward period. close to 25,000 VND per liter, the highest in 7 years and only 80 dong from the historical peak in July 2013.
Expenses for petrol price stabilization fund: E5RON92 gasoline has 22 times spent and 2 times not spent, the total amount spent is 30,268 VND/liter; RON95 gasoline has 17 times spent, 7 times not spent, the total cost is 11,223 VND/liter. Diesel 15 times spent, 9 times not spent and the total amount is 5,444 VND/liter; kerosene has 14 times spent and 10 times not spent, total expenditure is 5,362 VND/liter; mazut oil has 10 times spent and 14 times not spent, the total cost is 4,571 VND/1kg.
Taxes and fees that each liter of petrol is ‘burdened’
At present, a liter of gasoline is subject to many taxes. Specifically, import tax, excise tax, environmental protection tax, value added tax.
In addition, there are some items that are not tax, but are also included as the basis for calculating petrol and oil prices such as normative costs, normed profits, Price stabilization fund (in which the rate of deduction for the Price Stabilization Fund is more flexible).
Gasoline price structure includes: Taxable CIF price (imported gasoline price includes transportation costs), import tax (10%), tax VAT (10%), special consumption tax (10% and 8% respectively for RON95 and E5), environmental protection tax (3,800 VND/liter for E5 gasoline and 4,000 VND/liter for RON95). And yet, each liter of gasoline still incurs the business norm of 1,050-1,250 VND, the profit is 300 VND and the setting up of the Petroleum Price Stabilization Fund (BOG) according to the actual management of the management agency.
“The current tax rate for each liter of petrol is too high” – economist Pham Chi Lan. According to Ms. Lan, taxes and fees sometimes account for more than 60% of the gasoline price structure, especially the environmental protection tax is sometimes equal to 40% of the gasoline price, which is very unreasonable. In particular, in the context that businesses are trying to recover production and business, it is not reasonable to have to pay for taxes and fees in petrol prices.
It can be seen that, among the 4 types of taxes levied on petrol and oil, the environmental protection tax is the highest, “attached” to the absolute amount, instead of a percentage like many taxes. is different. Therefore, regardless of whether the price of gasoline drops sharply or increases sharply, the environmental protection tax cost per liter of gasoline remains the same.
New policies on petrol and oil price management in 2022
On November 1, 2021, the Government issued Decree No. 95/2021/ Decree No. 83/2014/ND-CP dated September 3, 2014 amending and supplementing a number of articles of the Decree No. 83/2014/ND-CP on petrol and oil trading, in which there are many changes in the petrol and oil management mechanism and pricing formula.
Accordingly, from January 2, 2022, the petrol and oil price management period will be reduced from 15 days to 10 days, ie three times a month. The operating time for petrol prices is on the 1st, 11th and 21st of every month. This will help the domestic gasoline price to more closely follow the world price movement, avoid shock increase and slow decrease compared to the world price fluctuation.
In case of volatile petrol price In case of abnormal activities, greatly affecting socio-economic development, the Ministry of Industry and Trade shall report to the Prime Minister for consideration and decision on the adjustment time. If the base price increases by more than 10%, the Prime Minister will decide on operating measures based on the report of the Ministry of Industry and Trade.
In 2022, the way to determine the elements constituting the base price of petrol and oil is also calculated according to New Circular issued by the Ministry of Finance.
Specifically, New Circular stipulates that the cost of petrol and oil import tax will be used to calculate the base price according to Decree 95/2021. In which, this cost is determined by the world gasoline price multiplied by the foreign currency rate plus the cost of bringing gasoline from abroad to a Vietnamese port. Then, multiply the above data by the weighted average petroleum import tax rate.
In which, the weighted average petroleum import tax rate will be announced quarterly by the Ministry of Finance on the 30th day of the last month of the quarter.
Similarly, the cost of excise tax is also used to calculate the base price of gasoline according to Decree 95/2021. In which, this cost is determined by the taxable price multiplied by the tax rate.
Based on the report on petroleum business expenses of domestic focal points, before July 1 every year, the Ministry of Finance will announce the percentage of business expenses norms plus profit norms for the Ministry of Industry and Trade to apply, calculate the excise tax calculation price.
Previously, the Government issued Decree 95/2021 amending and supplementing supplementing a number of articles of Decree 83/2014 on petrol and oil trading.
In particular, the new Decree adds the formula for calculating the base price of petrol and oil from January 2, 2022, which is determined from the proportion structure including both imported petroleum sources and imported petroleum products. domestic production, instead of relying solely on import prices as before.
Nhat Quang
FILI
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