Under the Government’s Resolution 45/2026/NQ-CP, signed on October 31, the 0% tax rate will apply until March 31, 2027.
The tax reduction has triggered a sharp adjustment in domestic petrol prices, with E5 RON 92 falling by VND 1,804 per liter to no more than VND 24,223 (USD 0.94), while E10 RON 95-III dropped by VND 1,575 to VND 24,159 per liter, according to the Ministry of Industry and Trade.
The new prices took effect at midnight on November 1.
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The price of E5 RON 92 falls by 1,804 VND per liter to no more than 24,223 VND (0.94 USD), while that of E10 RON 95-III drops by VND 1,575 to 24,159 VND per liter. |
The special consumption tax had previously stood at 10% for regular petrol, 8% for E5 biofuel and 7% for E10 biofuel under the special consumption tax law, which took effect on July 1.
According to the Government, the validity of the new resolution could be shortened or extended depending on socio-economic developments, energy security requirements and the need to stabilize the domestic fuel market. The Ministry of Industry and Trade may propose adjustments to the Ministry of Finance for submission to the Government.
The latest tax cut comes as Viet Nam faces mounting inflationary pressures in the final months of the year.
Nguyen Tien Thoa, Chairman of the Viet Nam Valuation Association, said the reduction in petrol taxes, alongside a 2% cut in average retail electricity prices from November 1, would help ease pressure on consumer prices and support economic activity.
The consumer price index rose 4.52% in the first nine months of 2026, slightly above the target, he said.
Domestic consumption typically rises towards the year-end, while faster public investment disbursement and credit growth could add to price pressures. Meanwhile, international energy market volatility and exchange-rate fluctuations could also affect domestic inflation.
Thoa said cutting the special consumption tax on petrol to 0% could reduce fuel prices by around VND 1,600 per liter, supporting production and business activities while helping contain inflation.
Ngo Tri Long, an economist at the Viet Nam Financial Consultants Association, said the energy price cuts would help reduce pressure on the overall price level at a time when room for inflation control in the final months of the year remained limited.
He said lower electricity and petrol prices would help businesses reduce input costs and households save on living expenses, while easing upward pressure on the prices of goods and services. The measures would support the Government’s twin goals of promoting economic growth and controlling inflation, while demonstrating its support for businesses and consumers amid ongoing economic difficulties.
The Ministry of Industry and Trade said Viet Nam’s petrol prices remained lower than those in neighboring countries as of October 31. Petrol prices stood at VND 32,550 per liter in Thailand, VND 32,010 in Cambodia, VND 48,276 in Laos and VND 36,125 in China, compared with no more than VND 24,159 in Viet Nam.
Source: VNA