Vietnam extends fuel tax cuts and proposes petroleum price deregulation

petroleum business tax reduction price deregulation fuel market reform Vietnam economy

The Vietnamese government has announced two major shifts regarding the petroleum market. First, Resolution 43/2026/NQ-CP extends preferential import taxes, environmental protection taxes, and VAT exemptions for petroleum and aviation fuel until December 31, 2026. This measure aims to stabilize the market and control inflation amid volatile global energy prices and geopolitical tensions in the Middle East.

Second, the Ministry of Industry and Trade is consulting on a draft decree to reform the petroleum business structure. The proposed changes aim to move toward a market-driven mechanism by granting businesses the authority to self-determine retail prices. Under this draft, the State would cease periodic announcements of base prices, shifting instead to a post-inspection oversight model.

The reform also proposes streamlining the distribution system, focusing on large-scale wholesalers and distributors with specific infrastructure requirements. While many businesses support the move toward market pricing, some distributors have expressed concerns regarding potential dominance by major wholesalers and the clarity of cost allocation within the new pricing formula.

Entities

Government of Vietnam · Ministry of Industry and Trade · Tran Huu Linh · Vietnam

Claims

What the coverage asserts, and how many sources carry each claim.

[● 5 SOURCES] Wholesale and independent distributors will have the authority to decide and declare their own retail prices. htv.vn
[DISPUTED] The Ministry of Industry and Trade will review and announce standard business costs every three years based on audited reports.
[DISPUTED] Standard business costs will be adjusted annually based on the Consumer Price Index (CPI).
[● 4 SOURCES] The proposed retail price formula is: purchase price + sourcing costs + standard business costs + profit + taxes.
[● 4 SOURCES] Under the draft decree, the State will no longer announce periodic base prices for petroleum. htv.vn
[● 10 SOURCES] The Ministry of Industry and Trade is seeking opinions on a draft decree to replace existing petroleum business decrees. baoxaydung.vn · htv.vn · vtv.vn
[● 2 SOURCES] Traders must declare prices within one working day and connect data directly to state management agencies.
[○ 1 SOURCE] Traders in remote areas may set prices up to 2% higher than announced prices to cover additional costs.
[● 2 SOURCES] The Vietnamese government has extended petroleum tax reductions until the end of 2026. baoxaydung.vn