Vietnam cuts gasoline tax to zero, prices fall from November 1

Deputy Prime Minister Nguyen Van Thang signed Resolution No. 45/2026 on Saturday, temporarily reducing the tax to zero through March 31, 2027.

Following the decision, the Ministry of Industry and Trade announced new gasoline prices effective from midnight on November 1.

E5RON92 gasoline fell VND1,804 (US$0.07) to VND24,223 ($0.94) per liter, while E10RON95-III dropped VND1,575 ($0.06) to VND24,159 ($0.94) per liter, making it approximately VND64 ($0.0025) cheaper than E5RON92.

Diesel and fuel oil were priced at VND30,246 ($1.18) per liter and VND23,596 ($0.92) per kilogram, respectively.

The Ministry of Industry and Trade and the Ministry of Finance continued to suspend contributions to the petroleum price stabilization fund, while maintaining restrictions on disbursements for most fuel products.

The tax cut came just days after a fuel price adjustment on October 29, when gasoline prices rose by VND500-700 ($0.02-0.03) per liter and oil product prices increased by VND300-700 ($0.01-0.03) per liter amid global oil market volatility.

Under the Special Consumption Tax Law, which took effect on July 1, conventional gasoline is normally taxed at 10 percent, E5 gasoline at eight percent, and E10 gasoline at seven percent.

Vietnam previously suspended the tax from late March through June to help stabilize the fuel market.

The government may shorten or extend the latest tax relief period depending on economic conditions, energy security needs, and fuel market developments.

According to the Ministry of Industry and Trade, gasoline prices in Vietnam are significantly lower than those in neighboring countries.

As of October 31, gasoline cost approximately $1.27 per liter in Thailand, $1.25 in Cambodia, $1.88 in Laos, and $1.41 in China, compared with Vietnam's new E10RON95-III price ceiling of $0.94 per liter effective November 1.

Speaking at a National Assembly session on Saturday, Thang said the gasoline tax cut, together with a two-percent reduction in retail electricity prices, was expected to provide an additional 0.07 percentage points of room to keep inflation within the legislature's target.

Vietnam Electricity Group (EVN) has also announced a two-percent reduction in the average retail electricity price, effective November 1.