Ministry of Finance proposes reducing import tariffs on petroleum to 0%.
The Ministry of Finance of Vietnam has proposed reducing the preferential import tariff to 0% for several petroleum products in order to enhance import capacity and help stabilize the domestic market.
According to documents submitted to the Ministry of Justice of Vietnam for appraisal, the Ministry of Finance stated that it is drafting a decree to amend the Most Favoured Nation (MFN) preferential import tariff rates for several petroleum products and related input materials. The draft is being developed under expedited procedures to promptly respond to developments in the global energy market.
The ministry noted that the global situation remains unstable, particularly the conflict in the Middle East, which has caused strong fluctuations in energy prices, especially for oil and gas. Global petroleum supply has shown signs of disruption, pushing crude oil prices higher. These developments have affected the domestic fuel market. Therefore, adjusting import tariffs is considered a measure to stabilize supply and ensure national energy security.
To address the situation, the Ministry of Finance has proposed reducing the MFN import tariff from 10% to 0% for unleaded motor gasoline (HS codes 2710.12.21; 2710.12.22; 2710.12.24; 2710.12.25) and gasoline blending components such as naphtha and reformate (HS code 2710.12.80). The MFN import tariff is also proposed to be reduced from 7% to 0% for diesel fuel, fuel oil, jet fuel, and kerosene. In addition, several petrochemical inputs such as xylene, condensate, and p-xylene would see their tariffs reduced from 3% to 0%, while other cyclic hydrocarbonswould be reduced from 2% to 0%.
Domestic retail fuel prices have risen sharply. Currently, prices listed by Vietnam National Petroleum Group show RON 95-V gasoline at VND 27,640 per liter, E10 RON 95-III gasoline at VND 25,850 per liter, and diesel at VND 30,530 per liter, the product experiencing the sharpest increase of more than VND 10,000 per liter within just one week. According to calculations by the drafting agency, if the new tax rates are applied based on the 2025 import turnover, state budget revenue could decrease by about VND 1.024 trillion. The decree is expected to take effect from the date of signing until April 30, 2026.
According to the Ministry of Finance, the conflict involving the United States, Israel, and Iran has significantly affected the global petroleum market. In particular, the blockade of the Strait of Hormuz has prevented around 20 million barrels of crude oil per day from being transported from the Middle East to refineries, especially in Asia. As a result, many refineries in the region have had to cut production, rely on crude oil reserves, and limit exports of refined petroleum products, pushing fuel prices even higher. Some refineries in Vietnam may also face difficulties as imported crude oil supplies could become insufficient.
Hai Phong News