The VND2.3 trillion (US$110.4 million) loss Petrolimex posted from the fuel business last year mainly resulted from the price stabilization policy, said Tran Ngoc Nam, deputy CEO of the country’s largest fuel wholesaler. The state-run company, fully known as the Vietnam National Petroleum Group, incurred a combined pre-tax loss of more than VND1.4 trillion last year, after the VND2.3-trillion loss from the fuel sector was partially covered by profits from its other businesses, the State Audit of Vietnam said in its report on the 2011 financial status of Petrolimex. “In 2011 Petrolimex mostly suffered losses from the fuel price stabilization sector, which is confirmed in the SAV report,” Nam told Tuoi Tre. “Generally speaking, Petrolimex has been operating with profits over the last few years in every sector but the fuel business.” The auditors also pointed out that Petrolimex has not adequately managed the fuel loss rate, sending the losses of the company to as much as VND189 a liter of gasoline, or kilogram of oil. But Nam said this is a matter of calculation. Other fuel wholesalers calculate the incurred loss expense starting from the departure of the fuel shipment from the exporting country to its arrival in Vietnamese ports, while in the case of Petrolimex, the calculation extends to encompass the duration ending in purchase by end-consumers, hence higher losses, he explained. Petrolimex is selling fuel in 62 out of the country’s 63 cities and provinces, some of which are in very remote areas, which results in high transport costs, he added.Other justifications Nam also justified another detail in the audit report, which said Petrolimex has earmarked as much as VND1 billion to buy the golf memberships for its chief officials. The purchase is real, but it was not done at Petrolimex headquarters, but a transporting company where it holds a 51 percent stake, he said. “The purchase was considered an investment to facilitate the company’s business, but we have transferred the memberships to other people and revoked all the money,” he claimed. Meanwhile, commenting on the VND20.7 million ($1,000) salary the company has been granting to its chiefs despite the losses, Nam said the executives deserve such high wages given their huge workload. Petrolimex headquarters is in fact managing the operations of 42 limited companies with 26 branches and plants, and nearly 2,200 filling stations across the country. “This is not to mention two overseas companies and 26 firms where Petrolimex holds the controlling interests,” he added.
More
Vietnamese peacekeeping sapper unit repairs road for people in Africa
The repair work was completed and the road was put into use recently after only three working days
Read more
A glimpse of location set for future night quarter in Ho Chi Minh City
Binh Tay Market, a renowned architectural relic and tourist attraction in the city, will spotlight the night quarter
18 hours agoHo Chi Minh City’s District 6 to open 1,510sqm night quarter
The night quarter will open from 6:00 pm till midnight
1 day agoVietnamese man not charged $352,000 in highly controversial credit card debt case
The lender already met with him to reach a win-win solution
2 days agoVietnam’s Pacific Airlines says $220mn debt written off
The airline began temporarily suspending its operations on Monday
1 week ago11 billionaires to attend investment promotion conference in Vietnam’s Binh Dinh
These billionaires come from Thailand, South Korea, Sweden, Israel, Singapore, and the United Arab Emirates
2 days agoHighlights
Vietnam asks vessels with Vietnamese on board to avoid passing through Red Sea
Tensions in the Red Sea are escalating
Photos
Artist paints murals on house to raise awareness of COVID-19 prevention in Hanoi
He drew the virus, vaccine, and earth on the exterior walls of a house
Latest news
Japanese volunteers promote tourism across Vietnam
Currently, there are seven volunteers operating in tourist destinations across the country, namely Da Nang, Da Lat, and Can Tho
Vietnam’s Dong Nai lays foundation stone to restore Long Hoa Pagoda
After three years of renovation, the pagoda will have five storeys
Vietnam asks vessels with Vietnamese on board to avoid passing through Red Sea
Tensions in the Red Sea are escalating
2 Chinese men arrested for attempting to illegally send 21 Vietnamese to Laos
The cost of illegal exit was set at 280 Chinese yuan (US$38.7) per person
A glimpse of location set for future night quarter in Ho Chi Minh City
Binh Tay Market, a renowned architectural relic and tourist attraction in the city, will spotlight the night quarter
Renovation underway at abandoned downtown park in Vietnam’s Nghe An
Park-goers in recent years discovered that the play zone and some other facilities of the park became deserted and aging
Vietnamese nurse on vacation saves Indian tourist from sudden cardiac arrest
Her timely and accurate first aid helped save the man's life
Vietnam, US pledge to push comprehensive strategic partnership forward: foreign ministerial dialogue
The two sides also agreed to expand cooperation in building semiconductor ecology and diversifying supply chains
Vietnam calls for prompt compliance with UNSC’s resolution on immediate Gaza ceasefire
Vietnam has repeatedly called for an end of violence in Gaza and strongly condemned attacks on civilians and civil infrastructure in the region
Vietnam attends ASGP meeting in Geneva
The meeting took place between Sunday and Tuesday this week in Geneva, Switzerland