Vietnam Fuel Prices Rise as Government Taps Relief Fund
Vietnam raised gasoline prices by 7.66% on Wednesday despite using its stabilization fund. The state is also cutting taxes to manage costs during the conflict.
Fuel prices in Vietnam continued their upward trajectory on Wednesday, prompting the government to intervene by tapping into its national price stabilisation fund. The Ministry of Industry and Trade reported that gasoline prices surged by 7.66%, while diesel saw a 1.6% increase. Conversely, kerosene prices experienced a decline of 7.7%. The ongoing geopolitical tensions involving the United States, Israel, and Iran have significantly impacted global energy markets, leading to these domestic price hikes. Data from the country's top fuel trader, PETROLIMEX GAS JSC, reveals that since the onset of the conflict, gasoline prices have climbed by 44%, diesel by 59%, and kerosene by 66%. To mitigate the impact on consumers and the economy, the government has begun drawing from the Fuel Price Stabilisation Fund. This mechanism is designed to buffer sharp retail price fluctuations during periods of global volatility, with fuel traders paying a fixed amount per litre of sales into the government-controlled fund. For the current adjustment, authorities are allocating 4,000 dong ($0.15) per litre for gasoline and kerosene, and 5,000 dong per litre for diesel. In addition to the fund allocation, Prime Minister Pham Minh Chinh has directed the Ministry of Finance to eliminate environmental protection taxes on fuels. Furthermore, the government has appealed to the private sector to encourage remote work arrangements to help lower overall fuel consumption across the nation.
