• Thu. Apr 18th, 2024

Breaking Free from State Control: The Ministry of Industry and Trade Proposes New Decree for Gasoline Pricing

BySamantha Jones

Apr 3, 2024
Petroleum businesses may charge a maximum rate of 20%, as suggested.

The Ministry of Industry and Trade is proposing a new decree to regulate gasoline prices, with the goal of promoting market-driven pricing. Under current regulations, the State sets a base price for retail gasoline prices, which serves as a ceiling for businesses to determine their own prices within the system. However, this process requires businesses to wait for the base price announcement from the State management agency before setting their prices, leading to a lack of flexibility and competitiveness in the market.

The Ministry believes that allowing businesses to set their own prices will promote competition in the market and help traders and regulators avoid periodic calculation and publication of costs. Therefore, they are proposing that the State not regulate gasoline prices but instead announce the average world price and certain fixed costs. Businesses can then calculate their maximum selling price based on these factors and their own expenses and profit norms, with the retail price to consumers not exceeding this maximum level.

The draft offers two options for businesses to calculate their costs and profit norms: Option 1 involves adding a fixed amount to the retail price, while Option 2 adjusts the percentage based on fluctuations in world gasoline prices. The Ministry believes that providing businesses with more freedom in pricing will lead to better efficiency and cost management within the industry.

In addition to promoting market-driven pricing, the proposed decree aims to maintain stability in petroleum business practices through regulations related to the Price Stabilization Fund and warehouse use. The Ministry will also monitor changes in costs and profits of enterprises and report any significant increases to the Prime Minister for consideration and adjustment. Overall, this decree aims to streamline gasoline pricing practices while promoting competition in the market.

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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