Under a resolution passed by the National Assembly, VAT on petrol and oil has been lowered from 10 per cent to 8 per cent.
As a result, the price of RON 95 petrol decreased by VND 390 per litre to VND 21,110, while E5 RON 92 dropped by VND 380, now retailing at VND 20,530 per litre. Similarly, diesel prices were reduced by VND 360 to VND 19,340 per litre. Kerosene fell by VND 350 to VND 19,060 per litre, and mazut by VND 310 to VND 16,950 per kilo.
This marks the first decrease in domestic RON 95 prices after five consecutive hikes. Currently, fuel prices are at their lowest level in four years, comparable to July 2021. Since the start of this year, RON 95 petrol has seen 15 price increases and 12 decreases. Diesel prices have risen 15 times and dropped 11 times.
This year, Vietnam has allocated a minimum supply of over 29.5 million cubic metres or tonnes of various fuel products to key petroleum traders. In the first half of the year, enterprises prepared around 13.86 million cubic metres or tonnes for the domestic market, meeting 47 per cent of the minimum target. Actual consumption, however, was only 12.6 million, leaving an inventory of approximately 1.7 to 1.8 million cubic metres or tonnes.
At a mid-year conference on fuel supply held on June 25, Tran Ngoc Nam, Deputy General Director of Petrolimex, announced that the group supported the promotion of biofuel usage. As part of this commitment, Petrolimex plans to pilot E10 petrol sales in Ho Chi Minh City from August 1 to assess technical performance and consumer demand.
Minister of Industry and Trade Nguyen Hong Dien stated that the use of E10 biofuel could become mandatory from January 1 2026.
