Disruption of the petroleum market due to poor management
At the Workshop on Commenting on the Draft Decree amending Decree No. 95/2021/ND-CP and Decree 83/2014/ND-CP on petroleum business held this morning on February 14 in Hanoi, many Representatives who are retailers, distributors, focal points, experts and scholars attended and analyzed and dissected the problems of the petroleum industry in the past time and the policy modification so that the differences, the fluctuations in petroleum will not recur in 2023.
Dr. Nguyen Dinh Cung, economic expert, former member of the Prime Minister’s Economic Advisory Group, former Director of CIEM Institute (CTV photo).
Dr. Nguyen Dinh Cung, an economist, former director of the Central Institute for Economic Management (CIEM), a member of the Prime Minister’s Economic Advisory Group, affirmed that in the past time, the fault has broken down. Important markets such as petrol and bonds have shown weakness in state management.
Mr. Cung said that many people say that the petroleum and bond markets are broken, the fault is due to the difference in 2022, there are situations. But we’ve been through many wars, we deal with many situations, so don’t blame the outside world.
“In the past, there were times when crude oil reached 140 USD, not in 2022. But before, the Government handled it differently, the way it was operated was also different, the information was not released to the public, the ministries did not “play football”. each other” as just now. I think that in recent times, it is very irresponsible for the ministries to blame each other,” said Dr. Nguyen Dinh Cung.
For further analysis, Mr. Cung said: In the past, the Government had many specialized and advisory groups such as the price control group, the national currency management council, the Prime Minister’s economic advisory group, etc., to listen to each other. , advising executive and decision-making bodies. Therefore, if there is a fault, it will only take a few days, then return to handle the problem.
Mr. Cung said that policies that have not been applied for a long time or have not been “absorbed” have been revised, including Decree 65/2022 on corporate bonds, Decree 95/2021 on petroleum, affecting the economy. very large to the market and businesses and clearly shows a narrow policy vision.
Economic expert Nguyen Dinh Cung emphasized: In times of boiling water and fire in the petroleum and bond markets, ministers and industry leaders need to listen to businesses, listen to experts, and not make statements. punish, use orders.
“Do not jump into the statement that you will do this, do that. Ministers and industry leaders need to learn from experience and need to change,” Mr. Cung said.
Regarding the issue of the petroleum industry, Dr. Cung said, the thinking of price management is to use the State to decide the final selling price. The key to governance is to take the distorted past as the operating framework for the present and the future. Even the undistorted past makes no sense to run.
“The final costs push into the domestic price, so if we don’t manage the price inflation, this is an absurd argument because the costs push all the prices, so if we manage more costs like circulation, requirements, price stabilization fund, operating apparatus, tax costs… If you worry about inflation, reduce taxes, which is much more effective than what we are doing,” Cung said.
In the second draft, the Decree amending the Decree on petrol and oil trading, the Ministry of Industry and Trade did not choose to propose that enterprises set their own selling prices, according to Dr. Nguyen Dinh Cung: The Ministry of Industry and Trade needs to explain why the market is not allowed. price decision, price liberalization first is rice – this is the commodity we worry about.
This time the price of petrol is liberalized, I believe the market is much smarter than we are. If there is concern, worry about the poverty group, the price on it is high, then it is provided directly to the buyer, that is a way not to distort the market, let the State manage the price and force businesses to bear it, which is absurd.
Mr. Cung suggested that the price stabilization fund should be abandoned and the price management mindset should be abandoned within 15 days or 7 days to let the market decide for itself.
As for the rights and responsibilities of distribution, according to Dr. Nguyen Dinh Cung, the core is to ensure adequate supply of goods in all conditions, this is the responsibility of the State, not the role and responsibility of enterprises. Karma.
According to Dr. Supply, in order for the petroleum market to be stable and free to market, what restricts competition must be eliminated immediately. Mr. Cung said that reforms need to be discussed a lot, not only “expanding” in the current Decree but also to change the mindset of state management.