The Government issued a decree last week that pegs the retail prices of gasoline and other fuels to global market prices.
Effective from December 15 this year, if prices decline by up to 12 percent, retailers will have to pass on the cost saving to consumers.
If they decline by more than 12 percent, retailers will have to cut prices after official agencies adjust import taxes and contributions to the petrol price stabilization fund.
If prices rise by up to 7 percent, the rise can be passed on to consumers.
If the rise is 7-12 percent, traders can increase the price by 7 percent plus 60 percent of the rate above 7 percent. The balance would be compensated from the stabilization fund.
If wholesale prices increase by more than 12 percent, the Government will adopt measures to maintain price stability through the fund and by cutting import tax.
Retailers applying for a license to sell fuel must operate gas stations meeting standard criteria and have sufficient trained staff.
Existing gas stations have to upgrade or relocate to meet the decree’s requirement.