Ministry of Industry and Trade proposes advance mechanism for fuel price stabilization fund

The ministry is drafting a circular governing advance disbursements from excess central budget revenues in 2025, as well as provisions on allocations to and repayments of the fund. The draft consists of five chapters.

Under the draft, provisions are set out for receiving and managing the funds from the state budget. Based on the 2026 budget estimates, the ministry will allocate funds to its Domestic Market Management and Development Agency to manage, monitor and inspect the fund’s use, while providing advances to fuel wholesalers to support price management.

The draft outlines procedures for advance disbursement. For the initial tranche, wholesalers will submit requests based on price management. The advance amount will be calculated based on projected consumption over seven days, multiplied by the fund’s spending rate (5,000 dong per liter of diesel and 4,000 dong per liter for other fuels). The agency will collect requests, submit them for approval and transfer funds into accounts held by enterprises.

For subsequent cycles, ahead of each price adjustment, wholesalers will report on fund usage, balances and demand for advances. The agency will then compile the data, seek approval and continue disbursements.

If advance funds are insufficient for a seven-day price management cycle, the agency will propose that the ministry report to the Ministry of Finance to seek additional budget allocations from competent authorities.

The draft also sets out provisions for repayment of advances to the state budget. Once the fund reaches at least 8 trillion dong, the ministry will require wholesalers to conduct independent audits to determine spending and contributions as a basis for settlement and repayment. Audits must be completed within three months, with results submitted to the ministry.

Hai Phong News