Vietnam has implemented a significant reduction in the special consumption tax on petrol products, dropping it to zero percent as of November 1. This measure, outlined in Government Resolution 45/2026/NQ-CP, aims to mitigate the cost of living, bolster business operations, and keep inflation in check. The tax reduction is set to last until March 31, 2027, although the government retains the option to adjust this timeframe based on economic conditions, energy security, and the stability of the domestic fuel market.
As a result of the tax cut, domestic fuel prices have seen a noticeable decrease. The cost of E5 RON 92 petrol has been reduced by VNĐ1,804 per litre, bringing it to a maximum of VNĐ24,223. Similarly, E10 RON 95-III has dropped by VNĐ1,575 to VNĐ24,159 per litre, with these new prices coming into effect at midnight on November 1.
Prior to this adjustment, the special consumption tax rates were set at 10 percent for regular petrol, 8 percent for E5 biofuel, and 7 percent for E10 biofuel. This strategic tax reduction is expected to alleviate transportation and production expenses and ease inflationary pressures, providing much-needed support for household spending and business activities, especially in the final months of the year.
Vietnam’s fuel prices, following this tax cut, are notably lower than those in several neighboring countries, including Thailand, Cambodia, Laos, and China. This comparative advantage could further stimulate economic activities by lowering operational costs for businesses and providing relief to consumers across the nation.