On March 13, 2025, the Ministry of Industry and Trade issued Circular No. 18/2025/TT-BCT amending, supplementing, and repealing certain provisions of circulars regulating petroleum trading [1] ("Circular 18"), which includes notable provisions related to periodic reporting obligations and other matters concerning the business operations of petroleum distributors, import-export enterprises, and retail agents.
In this week's article, ATA Legal Service will highlight the key contents of Circular 18.
1. Petroleum trading enterprises are responsible for submitting quarterly reports on the use and leasing of petroleum storage facilities they own and the use of leased petroleum storage facilities:
Circular 18 has amended and supplemented the provisions in Articles 7 and 8 of Circular No. 38/2014/TT-BCT of the Ministry of Industry and Trade on petroleum trading, which stipulates the responsibilities of petroleum import-export traders and petroleum distributors ("Traders"). Accordingly, traders must submit quarterly reports on the use and leasing of petroleum storage facilities they own and quarterly reports on the use of leased petroleum storage facilities, following the prescribed forms, to the Ministry of Industry and Trade and the Department of Industry and Trade in the locality where the trader leases the petroleum storage facilities.
The deadline for submission is within 10 days of the first month of the following quarter.
2. Retail petroleum traders signing agency contracts with two or three key petroleum business and distribution traders must submit a report to amend and supplement their business license:
In previous editions of our weekly legal document updates, ATA Legal Service highlighted the new provisions in Decree 80/2023/ND-CP, which allow a retail agent to sign contracts with up to three key petroleum business and distribution traders instead of just one as previously regulated. The recent amendment in Circular 18 provides detailed regulations to implement this provision appropriately. According to the amendments in Circular 18, retail petroleum traders signing agency contracts with key petroleum business and distribution traders should take note:
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In cases where a trader signs an agency contract with two (02) or three (03) key petroleum business traders or petroleum distribution traders, the trader must prepare and submit a report on changes and amendments to the agency contract to the relevant authority to request amendments and supplements to the Certificate of Eligibility for Petroleum Retail Agency and the Certificate of Eligibility for Retail Petroleum Stores, updating information on petroleum suppliers.
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In cases where a trader operates only one (01) retail petroleum store and signs an agency contract with two (02) or three (03) key petroleum business traders or petroleum distribution traders, the trader must submit a request to amend and supplement the Certificate of Eligibility, updating the petroleum supplier information in the Certificate of Eligibility for Retail Petroleum Stores.
3. Changes in the registration procedure for the petroleum distribution system of franchised petroleum retailers:
| Criteria | Current Regulations | New Regulations |
| Authority receiving registration | Ministry of Industry and Trade and local Departments of Industry and Trade where the trader has a distribution system | Local Department of Industry and Trade where the trader has a distribution system |
| Periodic registration deadline | Before January 5 of each year | Before January 10 of each year |
4. Amendments to the registration mechanism for the annual minimum petroleum supply:
The new regulations enhance the role and responsibility of the Ministry of Industry and Trade in determining the annual minimum petroleum supply, thereby facilitating the operations of key petroleum business traders.
This is reflected in the following aspects:
a) Key petroleum business traders must submit their annual minimum petroleum supply registration dossiers for the following year to the Ministry of Industry and Trade before November 30.
b) The deadline for the Ministry of Industry and Trade to allocate the minimum petroleum supply to key petroleum business traders for implementation in the following year is before December 31 of each year (instead of within thirty (30) working days from the date of receipt of the registration dossier under the previous regulations).
c) Traders may request adjustments to the minimum petroleum supply before October 30, and the Ministry of Industry and Trade must review and adjust the allocated minimum petroleum supply for key petroleum business traders before November 30 of the year. If no adjustments are made, the Ministry of Industry and Trade must provide a written explanation.
d) The Ministry of Industry and Trade may autonomously adjust the minimum petroleum supply to ensure domestic petroleum supply. This is to maintain and enhance the Ministry's role in managing the petroleum market and improving the operational efficiency of traders.
5. Repeal of the inter-ministerial and inter-agency mechanism for petroleum price control:
Circular 18 repeals certain provisions of Inter-ministerial Circular No. 39/2014/TTLT-BCT-BTC concerning the method for calculating the base price, the mechanism for forming, managing, and using the Price Stabilization Fund, and petroleum price management. Specifically, the circular abolishes the establishment of the Inter-agency Task Force for petroleum price management and the previous requirement for petroleum price announcements by the Ministry of Industry and Trade and the Ministry of Finance.
Instead, the Ministry of Industry and Trade is now the sole authority responsible for announcing base prices and retail petroleum prices after consulting with the Ministry of Finance. The announcement procedures have been simplified and streamlined compared to previous regulations.
Circular 18 takes effect from May 2, 2025.
[1] The circulars amended, supplemented, and repealed by Circular 18 include:
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Circular No. 17/2021/TT-BCT dated November 15, 2021, of the Ministry of Industry and Trade amending and supplementing Circular No. 38/2014/TT-BCT.
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Circular No. 38/2014/TT-BCT dated October 24, 2014, of the Ministry of Industry and Trade detailing the implementation of certain provisions of Decree No. 83/2014/ND-CP dated September 3, 2014, of the Government on petroleum trading.
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Inter-ministerial Circular No. 39/2014/TTLT-BCT-BTC dated October 29, 2014, of the Ministry of Finance and the Ministry of Industry and Trade, regulating the method for calculating the base price, the mechanism for forming, managing, and using the Price Stabilization Fund, and petroleum price management under Decree No. 83/2014/ND-CP dated September 3, 2014, of the Government on petroleum trading.
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