Vietnam cuts petrol tax to stabilise market

Vietnam stabilises its petrol tax

Vietnam has temporarily cut its environmental protection tax on petrol, diesel and jet fuel to zero, as the government moves to stabilise the domestic fuel market and safeguard energy security.

Under the prime ministerial Decision No.428/QD-CP, petrol, diesel and jet fuel will also be exempt from VAT declarations and payments, while still permitting firms to claim input VAT deductions.

The special consumption tax on petrol is also set at zero per cent.

The decision is taking effect from March 26 midnight through April 15.

It is considered an urgent solution to stabilise the domestic fuel market and safeguard energy security, and simultaneously ease the burden on households and help firms sustain production and trade, even as it trims state budget revenue by an average of about $288 million per month.

The government must report any adjustments to fuel tax rates to the National Assembly by March 30.

The decision followed the government's Resolution No.68/NQ-CP issued on March 26, which authorises the prime minister to apply tax reductions on petrol, diesel and jet fuel when required to serve national interests.

The Ministry of Industry and Trade (MoIT) and the Ministry of Finance decided to further cut retail fuel prices, effective from midnight on March 26.

Previously, since March 10, authorities continuously used the fuel price stabilisation fund, with spending ranging from VND3,000- 5,000 per litre for petroleum products. In the latest adjustment, however, the two ministries suspended the use of the fund.

According to the MoIT, Vietnam’s fuel prices remain at an average level in the region and are lower than those in neighbouring countries sharing land borders.

The ministry said it will coordinate with relevant agencies to inspect and supervise fuel traders to ensure adequate supply for the domestic market, while strictly handling any violations.

Site clearance work launched for Dung Quat refinery upgrade Binh Son Refining and Petrochemical JSC and Petrovietnam Construction JSC held a ground-breaking ceremony on February 2 as part of the site clearance package for the Dung Quat refinery expansion in Quang Ngai province.

Siam Cement Group announces 2025 results amid global headwinds SCG on February 9 announced its 2025 operating results, highlighting disciplined financial management amid a challenging global and regional economic environment.

Oil and gas sector sees renewed momentum Robust profit growth across the value chain, accelerating major projects and supportive policies are driving a strong rally in oil and gas stocks, with expectations of further upside in 2026.

Nghe An accelerates land handover for $2.3bn LNG power plant Nghe An province has directed departments to coordinate land handover for the $2.3 billion Quynh Lap Liquefied Natural Gas power plant, targeting construction to begin by the end of April.

Fuel import tariffs temporarily cut to zero until April 30 The government has temporarily cut preferential import tariffs on several petroleum products to zero, aiming to help businesses secure supply and stabilise the domestic fuel market amid global energy disruptions caused by Middle East tensions.