Removal of crude oil import tax to facilitate Dung Quat oil refinery

Thursday, 2019-09-19 16:44:39
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The Dung Quat Oil Refinery. (Photo: VNA)
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NDO – The Dung Quat Oil Refinery operated by the Binh Son Refining and Petrochemical Company (BSR) is expected to have more opportunities to access imported crude oil sources at competitive prices when the current import tax on crude oil imports is to be cut to 0% from November 1 this year, according to BSR.

Under the Prime Minister’s Decision No.28/2019/QĐ-TTg issued on September 16, 2019, import tax imposed on crude oil will be reduced from 5% to 0%.

The decision is considered an opportunity for domestic oil refinery plants including Dung Quat oil refinery to approach imported crude oil sources at competitive prices.

Dung Quat oil refinery is processing approximately 85% of domestic crude oil and 15% of imported crude oil. However, the domestic crude oil source has been declining, increasing demand for crude oil imports in the future.

General Director of BSR Bui Minh Tien said that this is a very positive signal for the company to access Azeri crude oil which has a large reserve in Azerbaijan and is of similar quality to domestic crude oil extracted from the Bach Ho oil field which can also be processed with high mixing ratio.

The removal of import tax will help BSR to expandopportunities to import crude oil, thus, enhancing its business efficiency and increasing its contributions to the State budget.

BSR will be given autonomy in purchasing crude oil and directly sign contracts with oil suppliers since 2020, helping the company to take advantage of business opportunities to maximize its profits.