The Vietnamese government has cut the fuel import tax rate to zero to stabilize the domestic fuel market amid escalating tensions in the Middle East, according to the Tuoi Tre newspaper.
According to a cabinet decree, the tax on motor gasoline imports has been reduced from 10% to zero, while duties on diesel, fuel oil, aviation fuel and kerosene have been reduced from the current 7% to zero. The preferential tax regime will be in effect until April 30, and the decree states that the Ministry of Industry and Trade may propose additional measures to ensure stability in the fuel market if necessary, the newspaper reported.
The Ministry of Industry and Trade noted that major wholesale suppliers of gasoline and petroleum products continue to import the quantities needed to supply the domestic market, despite rising import and logistics costs. Combined with the country’s existing commercial stocks, fuel supplies in March are expected to maintain stability in the domestic market next month. However, if the crisis in the Middle East drags on, Vietnam’s energy market could face serious challenges as early as April.
Vietnam remains a major importer of petroleum products to meet growing energy demand, due to the government’s goal of achieving double-digit economic growth and energy security in the next few years. Currently, most fuel imported into the country is duty-free from ASEAN countries and South Korea under existing free trade agreements. However, reduced global supply could make alternative fuel supplies to Vietnam scarce and more expensive.
According to the State Customs Committee, in 2025, Vietnam imported approximately 9.9 million tons of petroleum products worth 6.8 billion USD and approximately 14.1 million tons of crude oil worth 7.7 billion USD.