Vietnam considers market-based fuel pricing mechanism

Vietnam's Ministry of Industry and Trade is considering a new draft decree that would shift petroleum pricing from state-controlled mandates to a market-driven mechanism. Under the proposed plan, the State would no longer directly announce base prices or maximum retail prices for each period.

Instead, businesses would be empowered to determine their own retail prices based on a specific formula. This formula would account for purchase costs, sourcing costs, business expenses, profit margins, and taxes. Because different distributors will face varying logistics, facility, and sourcing costs, gas stations may display different prices for the same type of fuel. This change aims to allow for more flexible pricing and increased competition among retailers.