Vietnam Responds to Rising Oil Prices: Emergency Measures and New Initiatives

Vietnam is responding to a sudden surge in global oil prices triggered by escalating geopolitical tensions in the Middle East. The government has introduced emergency policy measures, including tariff cuts, price-stabilization mechanisms, and energy-efficiency initiatives, to mitigate the impact on businesses and consumers.

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Global crude oil prices surged at the start of the week, briefly exceeding US$100 per barrel amid escalating tensions involving Iran and broader instability in the Middle East. Prices later retreated on March 10 as markets reacted to signals of possible geopolitical easing and potential adjustments to restrictions on Russian oil exports. Brent fell to around US$92 per barrel, while US WTI declined to US$88, down roughly 6–7 percent.

Vietnam’s domestic fuel market has already reflected this volatility. As of March 10, retail fuel prices are capped at

• VND 25,226 per liter (about US$1.01) for E5 RON92;
• VND 27,047 (US$1.08) for RON95; and
• VND 30,239 (US$1.21) for diesel.

Recent adjustments increased fuel prices by US$0.15–0.34 per liter. The trend demonstrates how global oil price shocks are passing into Vietnam’s domestic market, raising concerns about higher logistics costs and inflation.

Businesses react as transport costs rise

In response to rising fuel costs, Vietnamese logistics and transportation companies have begun adjusting their pricing structures, highlighting the potential for broader inflationary pressures across supply chains. Several freight operators have issued notices to clients announcing increases in transport fees.

Many transport providers have also shortened the validity of price quotations to 24 hours, reflecting the rapidly changing fuel market environment.

Earlier on March 8, some logistics firms introduced contingency pricing scenarios tied directly to diesel prices. For example:

• Diesel prices between VND 25,000–30,000 per liter (approximately US$1–1.2): surcharge of VND 100,000 per container (about US$4).
• Diesel prices between VND 30,000–35,000 per liter (approximately US$1.2–1.4): additional VND 100,000 per container surcharge (about US$4).

Other companies have implemented fuel-linked pricing structures based on a reference diesel price. Meanwhile, on March 9, The Railway Transport Joint Stock Company (VRT) announced a 10 percent increase in passenger ticket prices and a 15 percent rise in freight rates.

Government moves to stabilize domestic fuel prices

Vietnam’s government has responded quickly to the global energy shock, establishing a task force on national energy security to develop policy responses to mitigate the impact of rising fuel costs on businesses and households.

Enabling faster domestic price adjustments

Vietnam’s Resolution No. 36/NQ-CP, issued on March 6, 2026, introduces mechanisms that allow more flexible fuel price adjustments.

Under the resolution:

• Domestic fuel prices can be adjusted before the regular weekly review cycle if the base price increases by 7 percent or more.
• Authorities may also activate additional stabilization mechanisms if fuel prices experience consecutive increases within a month exceeding 20 percent and pose risks to macroeconomic stability or inflation.

These provisions allow regulators to react more quickly to international price movements and prevent sudden shocks to domestic markets.

Temporary cuts to fuel import tariffs

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To support supply stability, the Ministry of Finance (MOF) proposed temporary reductions to the Most Favored Nation (MFN) import tariffs on various petroleum products.

The government formalized the proposal in Decree No. 72/2026/ND-CP, issued on March 9, 2026, which reduces import tariffs on several fuel categories to 0 percent.

The tariff cuts apply to:

• Unleaded gasoline;
• Naphtha and reformate used in gasoline blending;
• Diesel fuel;
• Aviation fuel; and
• Certain petrochemical feedstocks.

Previously, MFN tariffs ranged from 7 percent to 10 percent, depending on the product category. The decree is effective from March 9 to April 30, 2026, aiming to support domestic fuel supply and dampen price increases.

Calls for fuel conservation

In addition to fiscal measures, the government has urged businesses and consumers to reduce fuel consumption where possible.

Authorities have called on ministries, enterprises, and local governments to:

• Optimize logistics and transportation operations;
• Increase energy efficiency across industries; and
• Encourage public awareness of fuel conservation.

These efforts are intended to reduce pressure on domestic supply during periods of global market disruption.

Vietnam plans to mobilize the Fuel Price Stabilization Fund

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Since late 2023, the government has largely refrained from using the Fuel Price Stabilization Fund (FPSF), allowing reserves to accumulate. As of Q3 2025, the fund held approximately VND 5.6 trillion (about US$224 million), with Petrolimex accounting for the largest balance, totaling VND 3.085 trillion (around US$123 million).

With the fund at their disposal, Vietnamese authorities are considering new regulations to strengthen mechanisms to stabilize domestic fuel prices amid rising global market volatility. The Ministry of Industry and Trade (MOIT) is currently seeking feedback on a draft circular that introduces clearer conditions for when the fund can be used.

Under the draft proposal, the FPSF could be used if domestic retail prices experience unusually large fluctuations.

Specifically, stabilization measures may be triggered if:

• Retail fuel prices increase continuously within one month; and
• The cumulative increase reaches 20 percent or more.

Such price movements are considered significant enough to potentially affect macroeconomic stability, inflation control, and people’s livelihoods.

Monitoring the outlook: What steps should businesses take?

Vietnam’s response to the recent global oil price surge highlights the government’s willingness to deploy a combination of price stabilization mechanisms, tax adjustments, and supply-management tools to mitigate market volatility. For businesses operating in Vietnam, these developments present several important considerations.

Expect short-term fuel price volatility

Although global oil prices have shown signs of cooling, energy markets remain highly sensitive to geopolitical developments and supply disruptions. Businesses, particularly those in logistics, manufacturing, and transportation, should anticipate continued volatility in fuel costs and incorporate flexible pricing or cost-adjustment mechanisms into contracts where possible.

Monitor policy adjustments affecting fuel costs

Recent measures, such as temporary import tariff reductions on fuel products and potential activation of stabilization mechanisms, indicate that the government may continue adjusting fiscal and regulatory tools to contain domestic price increases.

Companies should closely monitor:

• Fuel pricing regulations and stabilization policies;
• Temporary tax or tariff adjustments affecting petroleum imports; and
• Changes to domestic fuel price review mechanisms.

Such policies can influence operational costs, logistics planning, and supply chain pricing structures.

Opportunities in energy efficiency and alternative fuels

The current price surge may also accelerate policy support for fuel efficiency and alternative energy solutions, including the expansion of biofuels such as E10 gasoline.

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Businesses may find opportunities in:

• Energy-efficient transportation and logistics solutions;
• Industrial energy management technologies; and
• Biofuel production and distribution supply chains.

Companies investing early in these areas could benefit from policy incentives and growing demand for lower-cost energy alternatives.

Domestic supply resilience offers market stability

Despite global volatility, Vietnam retains a relatively strong domestic energy position. The country currently meets approximately three-quarters of its fuel demand through domestic refining, primarily through the Binh Son and Nghi Son refineries.

This domestic supply base gives the government greater flexibility to stabilize markets than economies that rely heavily on imported refined fuel products.

For investors and manufacturers, this structural advantage may help limit the long-term impact of global energy shocks on Vietnam’s production environment.

For international investors, Vietnam's different localities offer favorable conditions across almost every sector, particularly as the country shifts toward higher value-chain manufacturing, high-tech industries, and innovation. Taking a closer look at Vietnam's provinces and investment destinations before committing capital can provide a decisive competitive advantage. A tailored market study, dedicated location selection, or business matchmaking can uncover factors that are often hard to assess—such as special incentives, skilled labor availability, and tax breaks.

Huyen Do

Manager, Business Intelligence Vietnam

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