Vietnam weighs electricity price cut, 0% special consumption tax on gasoline from November 1

At a meeting on electricity and fuel pricing on Tuesday, Deputy Prime Minister Nguyen Van Thang asked Vietnam Electricity Group (EVN) to urgently review its costs, maximize savings, and develop a plan to reduce the average retail electricity price.

EVN was tasked with submitting the proposal to the Ministry of Industry and Trade for review, with a view to implementing the price cut from November 1.

Vietnam's average retail electricity price currently stands at VND2,204 (US$0.085) per kilowatt-hour (kWh), excluding value-added tax, a rate in effect since May 10, 2025.

Household electricity tariffs follow a six-tier system, ranging from VND1,984 ($0.077) per kWh for the first 50 kWh consumed monthly to VND3,460 ($0.134) per kWh for consumption exceeding 400 kWh.

Under current regulations, electricity prices may be reviewed for adjustment at intervals of at least three months, depending on production costs and other factors.

Alongside the proposed electricity price reduction, the deputy prime minister directed the Ministry of Finance to review the legal basis, feasibility, and potential impacts of cutting the special consumption tax on all types of gasoline to zero.

The ministry will coordinate with relevant agencies and submit the proposal to the competent authorities for consideration before November 1.

Under the Law on Special Consumption Tax, effective July 1, 2026, conventional gasoline is taxed at 10 percent, while E5 and E10 ethanol-blended gasoline are subject to rates of eight percent and seven percent, respectively.

Vietnam previously reduced the tax on gasoline to zero from late March through June 2026 to help stabilize the fuel market.

The environmental protection tax on gasoline and oil products currently remains at zero per liter, while a policy exempting these products from value-added tax declaration and payment requirements has been extended through the end of 2026.

Both proposed measures are subject to further review and approval before taking effect.