The joint decision by the Ministry of Industry and Trade and the Ministry of Finance lowered prices of oil products by between VND 1,920 and VND 2,280 per litre, depending on the type.
Under the adjustment, diesel and mazut now cost VND 31,040 (approximately USD 1.24) and VND 20,330 (approximately USD 0.81) per litre, respectively.
In contrast, RON 95 III petrol rose by VND 220 to VND 23,760 (approximately USD 0.95) per litre, while E5 RON 92 increased by VND 250 to VND 22,590 (approximately USD 0.90).
Authorities also continued contributions to the fuel price stabilisation fund, setting rates at VND 400 per litre for diesel and VND 800 per litre or kg for petrol and mazut.
Under a National Assembly resolution, from April 16 to June 30, environmental protection tax on fuels including petrol, diesel, jet fuel, kerosene and mazut has been reduced to zero. Special consumption tax on petrol has also been cut to zero per cent.
In addition, petrol, diesel and jet fuel are exempt from VAT declaration and payment, although input VAT remains deductible.
According to the Ministry of Industry and Trade, VAT typically accounts for around 7.4 per cent of the base fuel price, environmental tax for 2.7–6 per cent, and special consumption tax about 6.7 per cent. Reducing these taxes to zero is intended to support economic growth targets and help control inflation.
Government estimates suggest the tax cuts will reduce state budget revenue by around VND 7.3 trillion (approximately USD 292 million) per month.
However, officials described the move as a special fiscal measure in response to extraordinary circumstances, aimed at mitigating the impact of global energy price volatility and maintaining macroeconomic stability and social security.
Rising tensions in the Middle East have driven up global energy prices, affecting Vietnam and other markets. Alongside tax cuts, the government has implemented measures such as using the price stabilisation fund and allocating VND 8 trillion (approximately USD 320 million) from the state budget to support it, in order to ease pressure on consumers and businesses.
