There have been petrol and oil enterprises who couldn’t stand it because of their loss of business and could not find a source of goods, so they had to put up banners announcing “loss of business, no money to import goods, hope consumers understand”. But why are a series of gas stations and shops in the South closed and closed for sale, while in the North the situation is less stressful?
Information for Tuoi Tre Online, Mr. Nguyen Thanh Tung – general director of Saigon East Petroleum Company Limited – said that from the beginning of September until now, the business situation has become more and more difficult due to the lack of clue traders. but often maintain a low discount rate, commonly 0 dong, but also provide gasoline in a drip, causing a shortage of goods.
Businesses stretch banners saying that they don’t have money to import goods, hope consumers understand – Photo: NK
Typically, more than a week ago, from the operating period on October 3, the supply from key traders sold very little, only providing a very small amount with businesses with contracts, to “endure through the day”.
In fact, at Mr. Tung’s company, there are no goods to import in recent days, although the business is a franchisee of the Vietnam National Petroleum Group (Petrolimex).
“We still continue to sell oil with a small amount to sustain through the day. Although we have applied for a leave of absence from early September to the authorities, but we are not allowed to take a break, the Department of Industry and Trade said that we will let management market management down to check, if violations will withdraw the license, so we also try to maintain. Although we and our partners support each other, the current market volatility makes it difficult for any unit, even more business is more and more at a loss”- Mr. Tung shared.
According to Mr. Tung, petroleum is an essential commodity, related to the country’s energy security. However, from the beginning of the year until now, business has been difficult, the world fuel price has changed abnormally, the domestic costing structure is not suitable but has not been modified, leading to business traders not being able to generate money to operate and must reduce the discount, causing consequences for the source of goods.
“The wholesalers and distributors do not have the initiative to source goods, so retail stores have many difficulties in accessing the source of goods. The discount rate for retail stores is almost 0 dong, sometimes adjusted up get 150-300 dong a few days then return to 0 dong.
We currently sell each liter at a loss of 2,000 dong, have to borrow money for business, now have a long loss, have no money to pay bank interest, pay staff salaries, risk being squeezed by the bank and assets, so now we no longer bear the burden floating already. And we sell in moderation like this, which also makes customers angry, intimidated, cursed, very unstable about security and order”- Mr. Tung stated.
The situation in the petroleum market has become more tense in recent days when a series of petrol stations in the South simultaneously closed and closed for sale. Many business enterprises reported continuous losses, plus the inability to access the source of goods, so they were forced to send a written request to the relevant departments to ask for a break.
In the North, records from the Hanoi market showed that although there were times when the supply of goods was interrupted, there were also gas stations hanging with signs to temporarily suspend the supply of goods, but the extent was not as great as in the South.
According to some petroleum distributors and agents, although the supply is scarce, they still try to maintain, not close for a long time due to fear of being inspected, sanctioned as well as losing customers. Enterprises try to overcome this difficult time to provide goods to consumers.
Talking to Tuoi Tre Online, a leading trader in the South said that the market demand in the North and Central region accounts for 50% of the market share, and has an advantage when Nghi Son and Dung Quat oil refineries are located in In this area, shipping is faster, so we can proactively source goods to meet about 80% of demand.
Meanwhile in the South, it will be more difficult to buy sources from the country, transport farther, so the supply of sources is not active, especially when the market has strong fluctuations.
According to this position, the total market demand currently only meets about 80% of the demand, the North and the Central region are more secure, and the South has a large shortage.
This enterprise also said that many petroleum traders suggested that the Ministry of Industry and Trade – the Ministry of Finance need to look directly at the market reality, fully assess the actual supply of petroleum to have appropriate management solutions, instead of always affirming the guaranteed supply as in the past.
Many petrol and oil distributors (who are purchased from many petroleum importers and exporters) in the South said that they can normally import but now cannot access the source of goods because the main traders only focus on ensuring supply in their system, so the supply to the outside is limited.
Another source from the business said that the withdrawal of permits for 7 major petroleum enterprises in the Central region and temporary withdrawal of permits for 5 enterprises in the South also had a direct impact on the supply of petroleum in the South.
“Many enterprises whose permits were withdrawn could not continue to import goods, and after being inspected, their imports were interrupted, so even if their licenses were returned, they have not resumed import activities, even many The business stops doing this on its own.
Although other businesses have not temporarily withdrawn their licenses, after receiving information about sanctions, businesses have their credit tightened, so it also affects imports,” he said.
Source: CafeF
Source: Vietnam Insider