The Ministry of Industry and Trade has proposed a new regulation to regulate gasoline prices. According to the draft, companies should calculate their own retail prices based on the seven-day average world price published by the state, rather than relying on the state to determine base prices. This change aims to promote market-driven pricing and allow businesses to set their own prices while ensuring that consumers do not pay more than a certain level.

Currently, the state determines the base price for retail gasoline prices, which serves as a ceiling for businesses to set their own prices within the system. However, this process requires businesses to wait for a base price release from the state management agency before setting their prices, resulting in a lack of market-driven pricing.

The Ministry of Industry and Trade believes that the current gasoline price management mechanism is not aligned with market principles. Therefore, they propose that the state does not regulate gasoline prices but instead publishes the average world price and certain fixed costs. Businesses can then calculate their maximum selling price based on these factors and their own costs and profit margins, with the retail price to consumers not exceeding this maximum level.

The draft offers two options for businesses to calculate their costs and profit margins: Option 1 involves adding a fixed amount to the retail price; Option 2 adjusts the percentage based on fluctuations in world gasoline prices. The ministry believes that allowing businesses to set their own prices will promote competition in the market and help marketers and regulators avoid periodic billing and publication of costs.

In addition, the draft includes regulations related to the Price Stabilization Fund and warehouse usage, aimed at maintaining fund stability and efficient distribution practices. The Ministry will monitor changes in enterprise costs and profits and report any significant increase to the Prime Minister for consideration and adjustment.

Overall, this proposed regulation aims to simplify gasoline pricing processes, promote competition in markets, ensure transparent pricing practices within industries while keeping consumers protected from overpricing.

By Samantha Johnson

As a dedicated content writer at newspuk.com, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

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