Economics

The reason why many petrol stations in Nghe An would like to stop operating

According to aggregated data from the provincial Department of Industry and Trade Nghe AnCurrently, there are 10 retail petrol stations that have applied to the Department of Industry and Trade to stop operating for various reasons. The most common reason businesses put on is prolonged losses.

Specifically, in 10 retail petrol stations, including: Ngoc Vinh petrol station (DNTN Ngoc Vinh) in Tang Thanh commune, Yen Thanh district; Kim Hoa Petroleum Store (Kim Hoa Petroleum Private Enterprise) in Van Thanh Commune, Yen Thanh District; Yen Thanh Food Petroleum Store (Thanh Nghe Tinh Food Joint Stock Company) in Yen Thanh town; Dong Tam Kinh Bac petrol station (Dong Tam Kinh Bac Petroleum Company Limited) in Lang Thanh commune, Yen Thanh district.

Thanh Cong Petroleum Store (Ngoc Mai Transport Service Trading Joint Stock Company) in Quynh Thien Ward, Hoang Mai Town; Van Huong Petroleum Store (Van Huong Trading and Service Company Limited) in Trung Phuc Cuong Commune, Nam Dan District; Thanh Chien Petroleum Store (Thanh Chien Petroleum Private Enterprise) in Nghia Phuc Commune, Tan Ky District; Nghia Hong Petroleum Store (Que Dung Private Enterprise) in Nghia Hong Commune, Nghia Dan District; Ngoc Hang Petroleum Store (Ngoc Hang Private Enterprise) in Chau Khe Commune, Que Phong District; and Huong Lien petrol station (Huong Lien Private Enterprise) in Nam Cat commune, Nam Dan district.

Consumption & Public opinion - The reason why many petrol stations in Nghe An would like to stop operating

Yen Thanh petrol and food store block II, Yen Thanh town has just asked the functional industry to stop operating. Photo VT

According to research in some stores business Retailers in the area, business continuously suffered losses because in the context of supply difficulties, the focal points were limited to sell, and at the same time cut the discount. Meanwhile, petroleum is a conditional business commodity, with price control and subject to the management and intervention of the State. Maintaining a fixed discount is currently inappropriate, there is no competitive incentive; 100 m shop3 petrol/month with seller 1,000 m3 gasoline/month are paid the same.

According to Ms. NTT, the owner of a petrol station in Tuong Duong, Nghe An province, if the discount rate for petrol cannot be improved in the coming time, it will be difficult for businesses to continue doing business.

Like Ms. T., Mr. NTD, the owner of a petrol station in Nghia Dan also informed that the unit suffered a continuous loss in the whole year of 2022. In the near future, if it cannot be improved, the enterprise will also have to withdraw its business altogether. this petroleum product.

Consumption & Public opinion - The reason why many petrol stations in Nghe An want to stop operating (Figure 2).

The situation of retail businesses filing to stop selling petrol is forecasted to continue

Talking about this issue, Ms. Tran Thi My Ha – Head of Trade Management Department of Nghe An Department of Industry and Trade said that the main reason given by businesses is that the petroleum business often loses money. There are more than 20 petrol stations in the province that have stopped operating after the license expired.

Currently, the Nghe An Department of Industry and Trade is continuing to direct key traders and petrol and oil distributors in the area to actively balance domestic production and import sources, in order to maintain the supply of petroleum products. Continuous supply of petrol and oil, sufficient supply of petrol for franchisees to avoid shortage of petrol and oil supply to the market.

Reviewing and synthesizing problems arising from petroleum supply, management and administration of petroleum activities; report, advise and propose the Provincial People’s Committee a reasonable and timely direction and management plan.

The Department continues to coordinate with the Provincial Market Management Department and functional forces to strengthen inspection, examination, control and supervision of petrol and oil trading activities in the area to clarify the reason why petrol retail stores oil temporarily suspended operation, resolutely handled according to regulations; promptly detect, prevent and strictly handle those who commit violations law in petroleum business.

Minh Tam

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