As the first refinery in Vietnam will enter the trade in 2009, Dung Quat Oil Refinery has some advantages when it sells on the market. But from the beginning of 2018, the plant faces huge fluctuations in both entry and exit.
In particular, the price of crude oil input since the beginning of 2018 has increased sharply compared to 2017 with a specific 74.64 per barrel compared to 56.52 per barrel. The actual price is much higher than the plan set for 2018 is only $ 53.15 a barrel.
It is worth noting that while the price of crude oil rose sharply (32%) compared to the average in 2017, the price of the product did not cover this increase.
In the new report submitted by the People's Committee of Quang Ngai Province, Ron 95 petrol price in 2018 is $ 89.56 per barrel, 17% higher than $ 76.43 per barrel in 2017. The RON 92 index is 18 % between 86.76 USD / barrel and 73.43 USD / barrel, while the price difference of diesel is 26%, ie 83.7 USD / barrel and 66.42 USD / barrel.
In production, the NSRP starts selling on the market also poses great challenges for the Dung Quat Oil Refinery.
"Since May 2018, when Nghi Son started supplying products, demand on the market is quite low, while the offer of Dung Quat Oil Refinery and import is quite abundant, leading to oversupply, which is affected unfavorably the selling price of Dung Quat products, "said Tran Ngoc Cang, Chairman of the Quang Ngai People's Committee.
With the NSRP ending the sale of about 419,000 cubic meters of oil in August 1818, selling about 554,000 cubic meters in September 2018 and the same amount in the coming months, the market was considered "excessive." Previously, the volume of gasoline NSRP has been produced since June 2018 is not yet exhausted and is in the warehouse in the south and north.
This led the leaders of the Binh Son Petrochemical Company (BSR) – the Dung Quat Oil Refinery management unit and the Quang Ngai People's Committee – to "put pressure on gasoline consumption by the end of 2018". as in the years to come ".
"According to some customers' comments, especially Petrolimex, the low price has recently made the domestic gasoline market very unstable, and the low price makes the discount rate constantly changing, affecting the production and inventory of many factors," said Quang Ngai People & # 39; s Committee.
With existing domestic sources of supply, including Dung Quat Oil, NSRP and condesec, Diesel imports will be large and will range from 1 million m3 to 3.6 million m3 in the current one from the last 6 months of 2018 to 2022.
The fear of preferential mechanisms
To ensure production, the Dung Quat Refinery imports part of Azerbaijan crude oil from Azerbaijan at a 5% duty, which is not part of MFN treatment in trade relations. with Vietnam. As a result, the zero rate of import tax for the NSRF is also expected to create some distances in the competitive process between the Dung Quat Oil Refinery and the NSRP.
With excess gasoline being pumped into the above calculation, Dung Quat refinery gasoline export is not subject to value added tax when processed from crude oil resources.
The Quang Ngai PPC report also lists some weaknesses in the Dung Quat Refinery's policy and policies as compared to Nghi Son. In particular, Dung Quat is not subsidized by 3-5-7% for plastic, LPG or oil when sold in the country. In addition, Dung Quat's 10% income tax is only 30 years from the date of operation, while the NSRF is the life of the project. Dung Quat is not free to convert foreign currencies such as the NSRP but must seek permission from the state bank on request and payment for each oil purchase contract.
In the media exchange, the representative of the Ministry of Industry and Trade has also stated that preferential treatment is equivalent to the state import tax for the NSRF in order to ensure the effectiveness of investment plans for investors by ensuring debt payment capacity of the investor during the first phase at the start of the project. BSR also enjoys this privilege in the first phase when the Dung Quat Oil Refinery was launched.
Commenting on the history of the sale price of Dung Quat oil refinery petroleum products and the NSRP, the representative of the Ministry of Industry and Trade said the selling price of the products is the active implementation of the company, according to the market situation. School, production plan and business strategy of the business. Until 2018, gasoline dealers in the country have signed contracts to purchase gasoline with partners importing and producing gasoline so that in order to sell products, the EAAA must reduce the sale price to consume Ensure the safety of its test run factory.
The Ministry of Industry and Trade has agreed to allow the NSRF to export 70,000 cubic meters of gasoline RON92. 170,000 m3 of petrol RON 95 · At the same time, ask the NSRP to consult the Ministry of Finance on issues related to taxes and export prices before you export the products.