Vietnam's ministries of Industry and Trade and Finance announced reductions in retail fuel prices on the afternoon of July 2, with the new rates taking effect from 4 pm the same day.
Under the latest adjustment, the price of E5 RON 92 petrol was cut by VND 1,050 per litre to VND 19,730 (approximately USD 0.75) per litre, while E10 RON 95 fell by VND 790 per litre to VND 20,410 (approximately USD 0.78) per litre.
Diesel prices were reduced by VND 690 per litre to VND 21,170 (approximately USD 0.81) per litre, while mazut declined by VND 980 per kilo to VND 14,050 (approximately USD 0.54) per kilo.
The latest adjustment marks a reversal after the previous increase in petrol prices. Fuel prices in Vietnam remain lower than those in many neighbouring countries in the region.
The government recently issued Resolution No. 34, extending tax incentives on fuel until September 30, three months longer than under the current regulations. The extension covers the most favoured nation (MFN) import tariff, the environmental protection tax and value added tax (VAT).
The special consumption tax on petrol, however, resumed on July 1. The tax rate is set at 10 per cent for mineral petrol, 8 per cent for E5 petrol and 7 per cent for E10 petrol.
According to the Ministry of Finance, the extension is intended to diversify fuel supply sources, strengthen energy security and help lower transport, logistics and business costs. The measure is also expected to support inflation control and promote economic growth.