Vietnam makes 3rd fuel price change in 3 days, 5th since Middle East tensions

The Vietnamese Ministry of Industry and Trade has adjusted fuel prices five times since March 5, including four increases and one cut, with the commonly-used RON95 gasoline rising to VND25,575 (US$0.97) from VND20,151 (US$0.77) per liter over the period, according to government pricing announcements.

Global energy prices have surged since military tensions involving the United States, Israel, and Iran erupted in the Middle East on February 28, with the Strait of Hormuz -- a key route for about one-fifth of global oil consumption -- at risk of disruption.

The Vietnamese government continued drawing from the fuel price stabilization fund in the latest adjustment to help moderate prices of gasoline and other fuels.

The trade ministry said global oil markets on Wednesday were influenced by continuing military tensions in the Middle East, as well as disruptions to shipping through the Strait of Hormuz following new attacks on vessels attempting to pass through the route.

It also cited the shutdown of a refinery in the United Arab Emirates after an attack, a proposal by the International Energy Agency to release oil from strategic reserves, and ongoing fighting between Russia and Ukraine.

At a government meeting on Monday, Vietnamese Prime Minister Pham Minh Chinh directed authorities to immediately use the stabilization fund to curb rising fuel prices.

The government has also reduced import tariffs on several petroleum products under a decree that took effect on Monday.

Fuel importers were asked to seek additional supply sources and increase imports and reserves to ensure adequate energy supply.

The Vietnamese Ministry of Finance has proposed cutting the environmental protection tax on fuel products to zero and submitted the plan to the government on Thursday.

Vietnam typically adjusts retail fuel prices on Thursdays under existing regulations, but the government has allowed earlier adjustments when base prices for commonly used fuels rise by seven percent or more, under a resolution adopted to respond to volatility in global energy markets.

(US$1 = VND26,294)