Hanoi (VNS/VNA) - The Ministry of Industry and Trade has ordered local authorities to inspect fuel supplies after some petrol retailers reported difficulties accessing supplies, especially diesel, while adding that no widespread shortages have been reported.
Nguyen Thuy Hien, deputy head of the ministry's Domestic Markets Management, was quoted by Tien Phong (Vanguard) newspaper as saying that the situation was not a widespread fuel shortage, but some localities were experiencing temporary supply disruptions as certain petrol stations sold fuel in limited quantities.
The ministry has taken steps to immediately inspect locations reporting shortages and identify the cause. Localities where shortages are taking place must examine the entire supply chain, including contracts between retailers and wholesalers, actual supply volumes, delivery schedules and the reasons for any failure to provide fuel.
Any hoarding or violations will be strictly handled, Hien said.
Hien attributed the localised shortages mainly to the fact that many fuel wholesalers have been buying fuel at high prices while retail prices have not adjusted quickly enough, resulting in larger losses as sales increased.
"This is not a case of running out of fuel, but the volume of fuel being sold is lower than normal," Hien said.
She added that fuel stocks remain available across the distribution system, particularly in the southern region.
The ministry has asked major fuel wholesalers to increase shipments from the south to northern and central provinces to ease localised shortages.
A representative from Petrolimex, the largest fuel distributor accounting for nearly half of the domestic market, said on July 26 that diesel demand across its system has remained high over the past seven months, particularly in the north, and had risen sharply in recent weeks.
Average daily diesel sales in July were 41.9% higher than the same period last year, while retail sales rose 36.8% year-on-year and 9.4% from the previous month, Petrolimex said.
The company attributed supply pressures partly to geopolitical disruptions, which have affected supplies through the Strait of Hormuz and made it harder for some fuel traders to secure supplies.
In some cases, certain stations may have to regulate sales for a short period to maintain continuous supply for different groups of customers, the representative said.
Petrolimex said it was increasing fuel procurement, adjusting distribution and moving supplies between regions while closely monitoring demand, inventories and incoming shipments to support areas facing higher demand.
Đo Manh Binh, deputy general director of PVOIL, which holds 24% of the domestic market share, said fuel shortages could occur locally even when national supplies are adequate if transport routes are disrupted, ports suspend operations or supplies fail to reach the right locations at the right time.
PVOIL is working with other members of Petrovietnam, including Binh Son Refining and Petrochemical JSC, PV GAS and PVTrans, to balance domestic and imported supplies and coordinate storage and logistics operations, he said./.
VNA
