Vietnam adopts measures to ensure fuel supply amid Middle East tensions

Military tensions involving the United States, Israel, and Iran in the Middle East since February 27 have disrupted global fuel supplies, as about 20 percent of the world's oil passes through the Strait of Hormuz between Iran and Oman.

According to the ministry, gasoline and diesel prices have risen sharply worldwide.

In the United States, gasoline increased US$0.88-1 per liter, or 11 percent, while diesel rose $1.14 per liter, or 15 percent.

Laos recorded jumps of 11-33 percent, Thailand 4-14 percent, China 8-12 percent, and France 8-15 percent, depending on fuel type.

Domestically, Vietnam’s two main refineries, namely Nghi Son and Dung Quat, meet about 70 percent of demand.

Dung Quat’s crude supply remains stable through April, while Nghi Son faces risks over reliance on Kuwaiti crude but has sufficient inventory and shipments to maintain operations.

Vietnam imports the remaining 30 percent of fuel needs, with March supplies secured, though April imports are expected to be more difficult as prices rise and some countries restrict exports.

Global crude prices spiked last Friday, with WTI closing at $90.90 per barrel, up 12.2 percent, and Brent at $92.69, up 8.5 percent against the day earlier.

Finished fuel prices rose more than 20 percent for gasoline and 35 percent for diesel, prompting Vietnam to adjust retail prices on Saturday.

Despite generally adequate supply nationwide, the ministry said some local fuel stations temporarily suspended sales due to shortages.

In Hanoi, fuel sales between Wednesday and Sunday last week increased 50 percent compared to January averages, with 17 stations temporarily closing before supplies were restored. Authorities also noted cases of residents stockpiling fuel in containers.

The ministry said its energy security task force has recommended urgent implementation of Government Resolution 36 to diversify crude sources for refineries.

The ministry has ordered fuel distributors to meet minimum supply quotas, maintain reserves, and prevent hoarding or illegal exports.

Coordination with police and border forces is being strengthened to curb speculation and price manipulation.

The ministry is also working with the Ministry of Finance on price stabilization measures, including possible tax adjustments and use of the national fuel price stabilization fund.

Longer-term plans include expanding national reserves, developing condensate and ethanol plants for blending, and accelerating the energy transition.