In a move aimed at alleviating economic pressures, Vietnam has announced a reduction of the special consumption tax on all petrol products to zero percent, effective from November 1. This tax cut, outlined under Government Resolution 45/2026/NQ-CP, is designed to lower fuel prices significantly, thereby easing the cost of living, supporting businesses, and controlling inflation within the country.
The reduced tax rate is scheduled to remain in effect until March 31, 2027, although the Vietnamese government reserves the right to adjust the duration based on economic conditions, energy security needs, and the stability of the domestic fuel market. As a result of the tax cut, the price of E5 RON 92 petrol has decreased by VNĐ1,804 per litre, now costing a maximum of VNĐ24,223. Similarly, E10 RON 95-III has dropped by VNĐ1,575, bringing its price down to VNĐ24,159 per litre. These revised prices were implemented at midnight on November 1.
Before this reduction, the special consumption tax rates were set at 10 percent for regular petrol, 8 percent for E5 biofuel, and 7 percent for E10 biofuel. Vietnam’s government anticipates that the lower fuel prices will help reduce transportation and production costs, while also easing inflationary pressures. This measure is also intended to bolster household spending and business activities in the final months of the year.
Vietnam’s fuel prices, even before the tax cut, were already relatively lower compared to several neighboring countries such as Thailand, Cambodia, Laos, and China. The current adjustment further enhances Vietnam’s competitive edge in terms of fuel costs, potentially offering additional economic benefits for both consumers and businesses.