Vietnam has implemented a significant tax reduction on petrol products, dropping the special consumption tax to zero percent effective from November 1. This measure, outlined in Government Resolution 45/2026/NQ-CP, is designed to alleviate the cost of living, bolster business operations, and manage inflation in the country.
The tax cut has led to a noticeable decrease in fuel prices. Specifically, the price of E5 RON 92 petrol has decreased by VNĐ1,804 per litre to a maximum of VNĐ24,223, while E10 RON 95-III saw a reduction of VNĐ1,575 to VNĐ24,159 per litre. These adjusted prices were implemented as of midnight on the first of November.
Prior to this change, Vietnam’s special consumption tax rates were set at 10 percent for regular petrol, 8 percent for E5 biofuel, and 7 percent for E10 biofuel. The government plans to maintain the zero-tax policy until March 31, 2027, but there is potential for adjustments based on economic conditions, energy security requirements, and the stability of the domestic fuel market.
By reducing fuel costs, the Vietnamese government anticipates a decrease in transportation and production expenses, which should help ease inflationary pressures. The initiative is also expected to enhance household spending and business activity as the year comes to a close.
Despite this adjustment, Vietnam’s fuel prices remain lower compared to several neighboring countries such as Thailand, Cambodia, Laos, and China. This strategic move is part of a broader effort to maintain economic stability while supporting the country’s consumers and businesses.