In a bid to alleviate living expenses and aid economic activity, Vietnam has eliminated the special consumption tax on petrol, dropping it to zero percent as of November 1. This governmental measure aims to support businesses and manage inflation, resulting in a notable decrease in domestic fuel prices.
According to Government Resolution 45/2026/NQ-CP, this tax reduction will remain effective until March 31, 2027. The period may be adjusted based on economic changes, energy security necessities, 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. Similarly, E10 RON 95-III saw a reduction of VNĐ1,575, bringing it down to VNĐ24,159 per litre, with the revised prices implemented at midnight on November 1.
Previously, the special consumption tax was set at 10 percent for regular petrol, 8 percent for E5 biofuel, and 7 percent for E10 biofuel. The Vietnamese government anticipates that these lower fuel prices will reduce transportation and production costs, thereby easing inflationary pressures. The initiative is also expected to boost household spending and business operations during the final months of the year.
Vietnam’s fuel prices, even before this cut, were lower compared to several neighboring countries such as Thailand, Cambodia, Laos, and China. The decision to reduce the tax is seen as a strategic move to maintain this competitive advantage and provide economic relief across various sectors.