Vietnam has taken a significant step to alleviate the financial burden on its citizens by reducing the special consumption tax on all petrol products to zero percent, effective from November 1. This measure has led to a notable decrease in domestic fuel prices, with E5 RON 92 petrol now costing VNĐ1,804 less per litre, priced at a maximum of VNĐ24,223. Similarly, E10 RON 95-III petrol has dropped by VNĐ1,575 per litre, now retailing at VNĐ24,159.
The tax reduction, enacted under Government Resolution 45/2026/NQ-CP, is set to remain in place until March 31, 2027, though the government retains the option to adjust this timeframe based on economic conditions, energy security, and the stability of the domestic fuel market. Previously, 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 lower fuel prices will help reduce transportation and production costs, thereby easing inflationary pressures. This initiative is also designed to bolster household spending and support business activities, particularly in the final months of the year. By lessening the cost of living, the government aims to provide relief to its citizens and stimulate economic activity.
Vietnam’s move to cut petrol taxes comes as its fuel prices remain lower than those in several neighboring countries, including Thailand, Cambodia, Laos, and China, positioning it as a competitive market for fuel costs in the region.