The Ministry of Industry and Trade and the Ministry of Finance announced a new reduction in fuel prices effective from 3 pm on June 25.
Under the latest adjustment, the price of E5 RON 92 petrol was reduced by VND 770 (approximately USD 0.03) per litre to VND 19,350 (approximately USD 0.74) per litre, while E10 RON 95 fell by VND 840 (approximately USD 0.03) to VND 19,910 (approximately USD 0.76) per litre.
Diesel prices saw a steeper cut, falling by VND 1,670 (approximately USD 0.06) per litre to VND 21,860 (approximately USD 0.84) per litre. Mazut prices declined by VND 1,650 (approximately USD 0.06) per kilogramme to VND 15,030 (approximately USD 0.57).
The government also decided to continue contributions to the fuel price stabilisation fund. Contributions were set at VND 300 (approximately USD 0.01) per litre for biofuel petrol and VND 800 (approximately USD 0.03) per litre for diesel and mazut.
The latest move extends a downward trend that has seen fuel prices fall sharply over the past five pricing periods. Petrol prices have dropped by more than VND 5,000 (approximately USD 0.19) per litre during that time.
Authorities said Vietnam's fuel prices are now lower than those in several neighbouring countries.
Meanwhile, the Ministry of Finance is seeking feedback on a draft government resolution to extend tax relief measures for fuel products and aviation fuel.
The proposal would extend the current reductions in most-favoured-nation import tariffs, environmental protection tax and value-added tax until September 30, instead of allowing them to expire at the end of June.
Excise tax on petrol, however, would return from July 1, with rates of 10 per cent for mineral petrol, 8 per cent for E5 petrol and 7 per cent for E10 petrol.
The ministry said maintaining a zero per cent preferential import tariff would help diversify fuel supply sources, reduce dependence on individual markets and strengthen energy security.
Officials also argued that continuing exemptions from VAT and environmental protection tax would help lower fuel prices, reduce transportation and production costs, and support efforts to contain inflation.
According to ministry estimates, extending the tax reductions from July 1 to September 30 would reduce state budget revenue by around VND 15.4 trillion (approximately USD 589 million) compared with a scenario in which all taxes returned to their pre-conflict levels following tensions in the Middle East.
However, the proposal would still generate more revenue than a full extension of all tax cuts at zero rates, while providing the government with greater flexibility should global oil prices become more volatile.
