While there are as many as 13,000 filling stations and fuel dealers around the country, fuel wholesalers can only watch over around 3,000 dealers under their systems, leaving the door wide open for those remaining to sell substandard products.
>> Dealers make substandard fuel to deceive consumers
Substandard fuel is the main suspect for the recent great number of bike-burning cases, as many petrol samples have been found containing other substances such as methanol, and even water.
Consumers are questioning whether it is the loose management of the fuel wholesalers over their dealers that have resulted in the circulation of poor-quality gasoline.
“It has become commonplace for a filling station to be the dealer of a wholesaler and at the same time also buying from other sources of poor quality products,” said Le Nhu Linh, chairman of the board of members of PV Oil.
“Consequently, fuel wholesalers cannot closely monitor their product quality when it reaches the very end -- the consumers.”
In fact, fuel wholesalers can currently keep their eyes on one fourth of the petrol retailers. This means the remaining three fourths can easily buy substandard products from untrustworthy sources without receipts or invoices to maximize profits.
S, the sales executive of the fuel department of a trading company in Ho Chi Minh City, said fuel has to undergo a strictly managed transferring process from the depot to the tanks of the dealers.
However, once the fuel has been transferred to dealers, no one can know how the story may go on, he said.
“For instance, the dealer can pump 15,000 liters of petrol into its 25,000-liter tank, and mix the tank with substances such as methanol or acetone,” he elaborated. “How can the wholesalers know of this fraud?”
The adulterated products will be sold out within just one week, making it even harder for the wholesalers to control, he added.
Figures from the Ministry of Industry and Trade show that there are around 13,000 fuel dealers countrywide. Of these, some 3,000 dealers are subject to direct management of the wholesalers’ retailing systems.
Petrolimex, the country’s largest fuel wholesaler, said it has 2,000 fuel dealers under its hand, while PV Oil has 463 fuel stores in its system.
Most wholesalers have guaranteed that they will watch the quality of products sold under their chains closely. However, the remaining 10,000 fuel stations are understandably out of wholesalers’ control.
“While we can ensure product quality of those under the system, it is difficult to do so with the outsiders,” said PV Oil Nguyen Xuan Son.
Chance for substandard fuel
Many filling stations admit to Tuoi Tre that they have to mix fuel with other substances to sell poor-quality products since the commission they receive from wholesalers has increasingly dropped.
There are times when commissions drop to VND150 a liter, and only VND50 after excluding transporting expenses, causing stiff losses for dealers, they said.
The representative of a fuel retailer in Ba Ria – Vung Tau said the commission could not even help them cover expenses, let alone earn a profit. To avoid losses, many dealers have bought fuel from sources of dubious origin and quality to receive commissions of VND500 of even VND1,000 a liter.
“Even the dealers themselves do not know which substances the fuel has been mixed with,” he said.
“What they care is that the products are cheap, and they will pocket the profits.”
Meanwhile, Decree No 84 of the Ministry of Industry and Trade stipulates that each dealer only source fuel from one general dealer or one wholesaler. Similarly, each general dealer can only source products from one wholesaler.
However, industry insiders said many fuel businesses have defied the regulation.
A group of 18 fuel retailers in Ba Ria – Vung Tau have recently petitioned the Prime Minister, saying that since the commission is uncompetitive, they have to buy fuel from sources other than the main wholesaler.
The retailers demanded to be allowed to choose to buy from wholesalers who offer the most competitive commissions.
With this, the dealers will be able to ensure profits, and will not have to buy from other sources, they said.
However, fuel wholesalers said this will make it even more difficult to watch over fuel quality.
A representative of a major general dealer in HCMC said each dealer usually has only one tank.
If dealer is allowed to buy from many different sources, all of the products will be poured into that same tank.
“Thus, in case one of the products is of poor quality, it is impossible for authorities to figure out exactly which is the substandard product,” he said.
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