The Prime Minister allows Binh Son Single Member Ltd – The Dung Quat Oil Refinery Management Company to have the self-control in price mechanism for import oil competition.
The Prime Minister Nguyen Xuan Phuc has just signed the Decision No 1725 in stead of the previously issued Decision No 952/2012 on financial mechanism for Binh Son Oil Refinery Company (BSR).
In accordance with the new decision, the government will abrogate regulatory receipts for oil products, liquid petroleum gas (LPG) and petrochemical products domestically consumed. In return, the government would also abrogate the privileges as adding 3-7% import tax to prices of gasoline end-product, reducing import tax of diesel and aviation fuel Jet A1 from 10% to 0%
According to the BSR Chairman Nguyen Hoai Giang, this decision will create the condition for Dung Quat petroleum products to compete with products from Korea, Japan or ASEAN. BSR expects the domestic partners to buy back Dung Quat products due to the advantages of shipping, insurance and exchange rate risk… It is also the condition helping Dung Quat Refinery Company to extend investment, and explicit its production and business activities, create premises for IPO by the end of 2017 under the government roadmap.
Although there was a lot of difficulties, but so far Dung Quat Company already produced 41.43 and sold 41.18 million tons of products with the turnover of VND 764.63 thousand billion, budget payment of 130.18 thousand billion and after tax profit of 6.17 thousand billion.
In the first 7 months 2016, the company produced 3.99 million tons of products with the turnover of VND 40.03 thousand billion, budget payment of 6.9 thousand billion and after tax profit of 1.091thousand billion.
Dung Quat Refinery plant always operated in safe and stable state at 105% design capacity with the products of good quality.
Regarding Dung Quat Refinery Plant extension, BSR has completed 100% topography survey, 98% compensation and site clearance, 38% overall design and signed 7/7 contracts on technological copyright for extension shops of the plant.