Vietnam has effectively reduced the special consumption tax on all petrol products to zero percent starting from November 1, resulting in a notable decline in domestic fuel prices. This measure, outlined in Government Resolution 45/2026/NQ-CP, is designed to alleviate the cost of living, bolster businesses, and manage inflation within the country.
The tax cut will remain in place until March 31, 2027, though the government retains the option to adjust the timeframe in response to economic conditions, energy security requirements, and the stability of the domestic fuel market. As a consequence of the tax reduction, the price of E5 RON 92 petrol has decreased by VNĐ1,804 per litre, bringing it to a maximum of VNĐ24,223. Similarly, E10 RON 95-III petrol has seen a drop of VNĐ1,575, now priced at VNĐ24,159 per litre. These revised prices came into effect at midnight on November 1.
Prior to this change, the special consumption tax rates were set at 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 lead to reduced transportation and production costs, thereby easing inflationary pressures. Furthermore, this fiscal adjustment is intended to support household budgets and business operations during the final months of the year.
Vietnam’s fuel prices, even following the tax cut, remain relatively lower compared to several neighboring countries, including Thailand, Cambodia, Laos, and China. The government’s strategic move aims to maintain competitive fuel pricing while supporting the broader economic landscape.