NEW POINTS REGARDING LIMITATIONS ON THE NUMBER OF PETROLEUM DISTRIBUTION SOURCES FOR RETAILERS

In order to address existing shortcomings and simultaneously enhance competitiveness within the petroleum business sector, on November 17, 2023, the Government issued Decree No. 80/2023/ND-CP, amending and supplementing certain provisions of Decree No. 95/2021/ND-CP and Decree No. 83/2014/ND-CP regarding petroleum business operations (“Decree 80”).

Decree 80 is considered a significant stride in the petroleum supply chain. One of its noteworthy aspects is the limitation on the number of distribution sources for retail petroleum dealers.

Let’s delve into the details with Bizlawyer below!

Retail petroleum dealers are traders who act as agents to retail petroleum products at their retail petroleum stores for distribution parties to receive remuneration.

Upon the effective date of Decree 80 (November 17, 2023), retail petroleum dealers are allowed to enter contracts to act as retail petroleum dealers for a maximum of 03 (three) traders, which can be petroleum distribution traders or intermediary traders of petroleum business. This regulation in the petroleum business laws enables and permits dealers to select or change suitable supply units rather than solely contracting as traders granting retail petroleum sales rights to an intermediary trader or a petroleum distribution trader, as per previous regulations. This fosters a proactive and flexible environment for petroleum dealers, thereby creating competition in fuel discounts within the market.

Furthermore, the addition of these new regulations in the decree has rectified the “loopholes” in economic contracts among entities, including businesses, dealers, main dealers, or petroleum distribution traders, where responsibilities for ensuring sources and discount cost clarity were previously not tightly defined.

The above constitutes the entire content of the news: “Limitations on the number of distribution sources for retail petroleum dealers under Decree 80.” Decree 80 will take effect from November 17, 2023.

This news aims solely to inform about newly enacted legal regulations and is not intended for specific advisory or application in individual cases.

We hope this information is beneficial to our readers.