Vietnam fuel prices rise amid fuel stabilization fund mismanagement

Fuel prices in Vietnam have increased for six consecutive adjustment periods. Since early September, E5 RON 92 gasoline has risen by 5,220 VND/liter, while E10 RON 95-III has increased by 4,980 VND/liter. Diesel prices have seen fluctuations but recorded a net increase of approximately 1,040 VND/liter.

The Fuel Price Stabilization Fund (FPSF) has been used to mitigate these price hikes, with the Ministry of Industry and Trade and the Ministry of Finance authorizing several disbursements in September. However, significant discrepancies exist in the fund balances among major petroleum enterprises. Petrolimex reports an estimated fund balance of 1,075 billion VND, though its account for state budget advances is estimated at a deficit of 282 billion VND. PVOIL reports a significant deficit of approximately 1,776.13 billion VND.

Investigations by the Government Inspectorate have revealed systemic mismanagement of the fund. Nearly 8,000 billion VND belonging to the state stabilization fund was reportedly misappropriated or used improperly by several major enterprises over many years. In 7 out of 15 inspected enterprises, fund money remained in corporate payment accounts rather than designated accounts. Due to these violations, the fund is being transferred to the State Treasury for management to prevent further unauthorized use.