Oil produced at the Dung Quat refinery will be auctioned out to reputed buyers, an official told Tuoi Tre Monday, adding that necessary paperwork is being done for it.
Nguyen Hoai Giang, general director of the Binh Son Oil Refining and Petrochemical Company Limited, which operates the refinery, said it should not be difficult to restrict the auction to reputed distributors.
Binh Son’s state-run holding company PetroVietnam (PVN) has held a similar auction for one of its subsidiaries, he said.
Last week a top PVN executive said poor forecast of supply and demand had left Vietnam’s sole oil refinery saddled with huge volumes of unsold products.
Domestic demand was 10 percent lower than forecast and the plant’s output was 25 percent higher, he said.
One wholesaler said Dung Quat’s products cost more than imported fuel but are still preferable because of the exchange rate risks involved in importing.
Three state-owned companies have the right to distribute Dung Quat products -- PV Oil, Petec, and Petrolimex.
Petrolimex was added to the list after it complained that it was unfair to allow just two of PVN’s affiliates to buy directly from the refinery.
Petrolimex is set to finalize a deal to buy 140,000 cubic meters of A92 and A95 gasoline and diesel oil with Binh Son this month.
