Regulations on Liquefied Petroleum Gas (LPG) Agency
According to Circular No.11/2010/TT-BCT of the Ministry of Industry and Trade dated 29 March 2010 promulgating the regulations on trading LPG, effectively on May 10, 2010, a LPG master distributor shall be entitled to determine wholesale and retail prices of LPG in their distribution system. Decision or notice on price changes must be sent prior to the implementation of new prices to all units within their system and to the Department of Industry and Trade of the provinces where their business establishments are located.
LPG principals would also be permitted to select and sign agency contracts with a maximum of three LPG traders which satisfied conditions required for a general agent, agent. On the other hand, an agent would be permitted to select and sign agency contracts with up to three wholesale traders or qualified general agents. At each LPG-selling point or car filled station of a general agent, an agent would be permitted to sell bottled LPG in bulk up to three wholesale traders or/and general agents pursuant to signed contracts.
Wholesale traders and general agents can sell directly to end-users at their own office or set up an agency system in accordance with the regulation for the purposes of direct sales to end-users. They shall be jointly liable for sales price, quality or quantity of LPG, according to fault.
The wholesale trader must register its agency system with the provincial Department of Industry and Trade in the province in which its agency is located within the first quarter of a year.
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