Vietnam's fuel price cuts fail to lower food and market prices

Vietnam has repeatedly lowered gasoline and diesel prices, but prices of essential goods in Hanoi's markets and supermarkets have remained high. Small retailers such as Vũ Thị Hiến of Kim Liên market say transport costs have not been reduced, keeping wholesale prices unchanged, while other vendors note that fruit and meat prices still reflect seasonal factors rather than fuel costs.

Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân warned that merchants must adjust retail prices in line with lower fuel costs and stop maintaining unreasonable price levels. The ministry has ordered a review of pricing practices, targeting violations such as price gouging and hidden fees, and pledged further enforcement actions. Restaurant owners also explain that fuel is only a small part of their cost structure; higher ingredient and operating expenses keep menu prices, such as bowls of pho, unchanged despite cheaper fuel.

The government’s response aims to ensure that lower fuel prices translate into lower consumer prices, but market participants report limited impact so far.