The National Assembly on April 9 afternoon heard a Government proposal and a appraisal report on a draft resolution introducing special tax measures for petrol, oil and aviation fuel, including environmental protection tax, value-added tax (VAT) and excise tax.

Minister of Finance Ngo Van Tuan presents the Government’s proposal.

Presenting the Government’s proposal, Minister of Finance Ngo Van Tuan stressed that escalating tensions in the Middle East have triggered sharp fluctuations in global energy prices, particularly oil and gas, disrupting supply chains and pushing up crude oil prices.

These developments have significantly impacted Vietnam’s fuel market, driving up retail prices in a short period and affecting business activities as well as daily life and income of people.

To address the situation, the Government has deployed fiscal measures, including issuing Decision No. 482/QD-TTg, which temporarily reduced the three taxes from March 26 through April 15, 2026.

The move helped bring down fuel prices, but was designed only as a short-term emergency measure while geopolitical risks remain unpredictable.

The draft resolution, therefore, proposes a longer-term policy framework to help maintain macroeconomic stability, curb inflation and stabilise public sentiment.

Under the proposal, the environmental protection tax on petrol (excluding ethanol), diesel, aviation fuel, kerosene and mazut will be reduced to zero Vietnamese dong per litre.

These products will also be exempt from VAT declaration and payment while still allowing input VAT credit. In addition, the excise rate on petrol of all types will be cut to 0%.

The draft sets the implementation period from April 16 to June 30, 2026, and assigns the Prime Minister authority to issue specific decisions to shorten or extend the resolution’s validity, ensuring flexible management of the domestic fuel market in line with global oil price developments.

Presenting the appraisal report, Chairman of the Committee for Economic and Financial Affairs Phan Van Mai said the panel largely endorsed the need for the policy as proposed by the Government.

However, it stressed that tax cuts should be accompanied by broader, well-coordinated measures, including tighter price management, enhanced transparency in base fuel price calculations, strengthened supply chain resilience, and stricter oversight to curb hoarding and speculation, in order to improve policy effectiveness and ensure consistency with the Party and State’s orientations.

Most deputies backed the proposed timeframe from April 16 to June 30 this year, though some suggested a longer application period in light of ongoing Middle East tensions and their impact on global oil prices, to better support macroeconomic stability and growth.

To ensure flexibility and timely response in line with Conclusion No. 18-KL/TW dated April 2, 2026 of the Party Central Committee, some delegates proposed authorising the Government to adjust the resolution’s duration.

Others recommended that, in keeping with legislative authority, any such adjustments should be submitted to the NA Standing Committee for consideration.

Several opinions also favoured granting the Prime Minister the power to modify the resolution’s validity, while calling for tighter safeguards, including a cap on the maximum extension period and clearly defined conditions for any extension, such as the continuation of the Middle East conflict and its sustained impact on global oil markets.

Vietnam cuts fuel taxes to zero till April 15 to stabilise energy market

The cuts are expected to ease the burden on households and help firms sustain production and trade, even as it trims state budget revenue by an average of about 7.2 trillion VND (276.9 million USD) per month.

 

Vietnam diversifies supply sources to meet domestic fuel demand

Since the Middle East conflict disrupted crude and refined fuel supply chains, Petrovietnam has swiftly activated a range of response measures while moving decisively to implement the Government’s Resolution 36/NQ-CP dated March 6, 2026 to secure energy supply for the market.

 

PM gives green light to advance from state budget for fuel price stabilisation fund

PM Chinh stressed that the top priority is to ensure no shortages of energy or fuel in any circumstances; minimise negative impacts from the energy crisis on macroeconomic management; and prevent disruptions to supply chains, production, business activities, and people’s consumption.

 

Vietnam steps up semiconductor development to fuel growth

Amid rapid advances in artificial intelligence and digital technologies, global demand for semiconductors is soaring, creating both opportunities and competition pressure.

 

E5 RON92 biofuel price falls in latest adjustment

Since the beginning of this year, domestic fuel prices have undergone 14 adjustments, including five decreases and nine increases for RON95 and six declines and eight hikes for E5 RON92. Meanwhile, diesel price has fallen three times and risen 11 times.

 

Price stabilisation fund used, retail fuel prices continue to rise in latest adjustment

Funds from the Fuel Price Stabilisation Fund are disbursed at the following levels: 4,000 VND (0.15 USD) per litre for both bio petrol and lead-free petrol; 5,000 VND per litre for diesel; 4,000 VND per litre for kerosene; and 4,000 VND per kilogram for mazut.