VIETNAM TAKES URGENT MEASURES TO ENSURE ENERGY SECURITY AMID MIDDLE EAST CONFLICT

HANOI,  March 7 (Bernama-VNA) -- The Vietnamese Government has issued Resolution No. 36/NQ-CP outlining urgent measures to safeguard national energy security and prevent fuel disruption amid escalating Middle East tensions, Vietnam News Agency (VNA) reported.

Under the resolution, the government required oil contractors to prioritise selling crude oil or condensate which has not yet been committed for export to the domestic market if suitable for domestic refinery processing.

The Ministry of Finance has been authorised to direct Vietnam National Industry - Energy Group (Petrovietnam) to decide specific implementation measures, ensuring flexibility and compliance with the law under crisis conditions.

At the same time, Petrovietnam and its subsidiaries operating in crude oil processing and trading, including Binh Son Refining and Petrochemical JCS and Petrovietnam Oil Corporation (PVOIL), are permitted to buy, sell, import and export crude oil and feedstock used in petroleum production.

 The Ministry of Industry and Trade and the Ministry of Finance were tasked with closely reviewing domestic fuel supply and taking proactive steps to ensure sufficient petroleum for production, business and consumer demand.

 To respond more quickly to market volatility, the government has also approved changes to the mechanism for adjusting domestic fuel prices.

 Under the new approach, if the base price of widely used petroleum products rises by seven per cent  or more compared with the previous reference price, authorities will implement a price adjustment immediately after the increase is recorded rather than waiting for the regular weekly review cycle.

 If the increase is below seven per cent, fuel prices will continue to be reviewed and adjusted on the regular weekly schedule every Thursday in accordance with Decree 80/2023/NĐ-CP.

 The government has also asked the Ministry of Finance to urgently draft amendments to most-favoured-nation (MFN) import tariff rates on several petroleum products.

The proposal is to be submitted to the government on March 7 under an expedited procedure.

 In case domestic refineries struggle to meet contracted fuel supply volumes and imports, the Ministry of Industry and Trade has been tasked with directing distributors to draw on commercial petroleum reserves or release fuel from national strategic reserves to stabilise supply.

 The government stressed that the measures must be implemented with transparency and strict oversight to prevent misconduct or policy abuse.

 To reduce the risk of fuel shortages, the Ministry of Industry and Trade will coordinate with Vietnam Electricity (EVN) and Petrovietnam to prioritise the use of domestically produced gas for power generation, replacing part of the imported liquefied natural gas (LNG) supply.

 In the longer term, the Ministry of Industry and Trade and the Ministry of Science and Technology were asked to urgently review technical standards and regulatory conditions to facilitate an earlier rollout of the biofuel transition roadmap in order to reduce reliance on fossil gasoline.

 The government also urged efforts to strengthen energy-saving and increase energy efficiency.

-- BERNAMA-VNA