The Viet Nam National Oil and Gas Group (PetroVietnam) has committed to taking bold measures to stabilise its prices on Thursday in acknowledgement of Prime Minister Nguyen Tan Dung’s directive to tame inflation.

PetroVietnam unveiled the measures at a press conference held in Hanoi to announce its business performance so far this year.

The corporation’s core products include nitrogenous fertiliser, oil and gas, and LPG (liquefied petroleum gas). Galloping inflation is expected to send the prices of these products sky-high. A dire situation for goods deemed essential for both consumption and manufacturing.

Dinh La Thang, chairman of PetroVietnam’s management board, said the group had made great efforts to stabilise, and in some instances cut its prices.

One of the group’s affiliates, the Phu My Fertiliser Co, processes 750,000 tonnes per annum, one third of the nation’s demand.

In the first quarter, the corporation produced 200,000 tonnes of nitrogenous fertiliser while importing 100,000 tonnes. It plans to ship in an additional 100,000 tonnes in the next quarter, Thang said.

"The group will restructure its fertiliser distribution systems to ensure direct sales to the consumer. Should unauthorised transactions occur between our member companies and intermediaries, the offenders will be immediately dismissed," Thang stressed.

As a result, the prices of fertiliser shed VND300-400 a kg several days ago.

"PetroVietnam guarantees fixed price levels nationwide," Thang added.

To counter anticipated power shortages which adversely impact production, PetroVietnam has put its Ca Mau Power Factory No1 into operation. It plans to inaugurate the Nhon Trach Electricity Plant in the second quarter of the year.

"To ensure the supply of processed oil products, PetroVietnam pledges to put forward the completion date of Vietnam’s first oil refinery, Dung Quat, to February next year," Thang said.

PetroVietnam also revealed it will co-ordinate with foreign-partners to set up a joint venture to bring about the nation’s second oil refinery, Nghi Son, on April 7. The project is estimated to cost US$6-7bil.

Furthermore, the group would do its best to examine its current investment and production projects to wipe out inefficiencies; cut input costs and public expenditure; restructure its operations; apply advanced technologies to raise efficiency and boost oil exports to reduce the nation’s trade deficit.

Impressive figures

PetroVietnam deputy director general, Le Minh Hong, has announced a record-breaking first-quarter revenue of VND69.4tril ($4.3bil), a soar of 71% year-on-year.

Crude oil exports accounted for over $2.8bil of the total figure, up 49% against the same period last year.

The impressive figures were much better than expected. Hong attributed the higher export earnings to oil prices sky-rocketing on the world market.

The corporation paid about VND30.5tril (US$1.9bil) in tax during the first three months of the year, up 18% from the previous year and representing 35% of the State budget revenue in the same period.

In the second quarter, PetroVietnam targets total revenue of VND66.5tril ($4.2bil), $2.85bil of which will come from crude oil exports with an estimated VND25.3tril docked as tax.

It’s also gearing up to pump more than VND23tril into investment projects from April to June.

PetroVietnam is one of leading corporations in the country, accounting for 22-23% of the nation’s GDP (gross domestic product) while providing around one third of the State’s tax coffer.

(Source: Viet Nam News)