Vietnam PM backs plan to use state budget for fuel price stabilization fund

Chinh chaired a government meeting on Friday on funding for fuel price stabilization, attended by deputy prime ministers and senior officials.

The government said tensions in the Middle East and volatility in global oil markets have affected energy supply and prices.

Authorities have in recent days used the stabilization fund and adjusted taxes on fuel, while directing companies to increase supply of fuel, coal, electricity and gas, and step up checks against smuggling, hoarding and profiteering.

Chinh said the priority is to ensure there are no shortages of energy or fuel and to limit the impact on the economy.

He agreed in principle to advance funds from the state budget, using increased revenue in 2025, to support the stabilization fund, with repayment to be made when conditions allow.

The Ministry of Finance was tasked with finalizing the proposal and submitting it to competent authorities, with implementation planned through April 15 and subject to extension.

Chinh also called for close monitoring of market developments and timely policy responses, while maintaining stable supply and prices.

Vietnam has raised fuel prices several times in recent weeks, tracking global refined fuel price movements under its market-based pricing mechanism with state management.

Global oil prices have been volatile due to escalating conflict in the Middle East since February 28 and concerns over supply disruptions through key shipping routes, with crude rising above US$100 per barrel, according to industry data.