Vietnam has implemented a zero percent special consumption tax on all petrol products as of November 1, resulting in a notable decrease in fuel prices across the country. This policy, introduced under Government Resolution 45/2026/NQ-CP, aims to alleviate the cost of living, bolster business operations, and manage inflation.
The tax reduction is set to remain in place until March 31, 2027, with the possibility of extension or reduction depending on economic conditions, energy security needs, and the stability of the domestic fuel market. Following the tax cut, the price of E5 RON 92 petrol decreased by VNĐ1,804 per litre to a maximum of VNĐ24,223, while E10 RON 95-III saw a reduction of VNĐ1,575 to VNĐ24,159 per litre. These revised prices became effective at midnight on November 1.
Prior to this change, the special consumption tax rates were 10 percent for regular petrol, 8 percent for E5 biofuel, and 7 percent for E10 biofuel. The Vietnamese government anticipates that the lower fuel prices will help reduce transportation and production costs, thereby easing inflationary pressures. This measure is also expected to support household spending and business activities during the closing months of the year.
Despite the drop in prices, Vietnam’s fuel costs remain relatively lower compared to several neighboring countries, including Thailand, Cambodia, Laos, and China. The government hopes this competitive pricing will further stimulate economic activity and provide relief to consumers during challenging economic times.