Vietnam extends fuel tax exemptions through September

The Vietnamese Ministry of Finance has proposed extending a set of tax breaks on gasoline, diesel, aviation fuel and related feedstocks until 30 September. Under the draft resolution, import duties (MFN), the environmental protection tax and value‑added tax will remain at 0 %, while the special consumption tax on gasoline will be re‑imposed from 1 July at rates of 10 % for mineral gasoline, 8 % for E5 and 7 % for E10.

The measures aim to stabilize domestic fuel prices, support energy‑intensive sectors and curb inflation amid lingering global oil‑price volatility linked to Middle‑East tensions. The Finance Ministry estimates the tax extension will reduce state revenue by about VND 15.4 trillion over the last three months of 2026, but forecasts that retail fuel prices would rise sharply—up to 43‑67 % for some grades—if the full tax regime were restored, adding roughly 0.78 percentage points to the CPI.

By keeping the exemptions in place, the government seeks to limit price increases to around 5‑8 % for gasoline and keep diesel prices largely unchanged, thereby mitigating pressure on household costs and the broader economy.