• Sat. Apr 13th, 2024

Revolutionizing Gasoline Pricing: The Ministry’s Proposed Decree

BySamantha Jones

Apr 2, 2024
Petroleum businesses may charge a maximum rate of 20%, as suggested.

The Ministry of Industry and Trade is seeking to bring more market-driven pricing to the gasoline industry by proposing a new decree that regulates prices based on the 7-day average world price announced by the State. This proposal replaces previous decrees on petroleum business and was consulted with stakeholders from April 1.

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 market-driven pricing.

The Ministry believes that this mechanism does not align with market principles and is therefore 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 allowing businesses to set their own prices will promote competition in the market and help traders and regulators avoid periodic calculations of costs.

In addition to these changes, the draft also includes regulations related to warehouse use and Price Stabilization Fund management aimed at maintaining stability in these areas while ensuring efficient distribution practices. The Ministry will monitor changes in costs and profits of enterprises and report any significant increases to the Prime Minister for consideration and adjustment.

Overall, this proposed decree aims to simplify the process of setting gasoline prices, encourage competition in the market, and ensure transparent pricing practices within

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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