Gasoline price rises 1.5 pct

1 min readUpdated May 20, 2025Jun 22, 20226:02 AM

In this article (5)

Vietnam’s RON 95 gasoline price increased by 1.54 percent Tuesday to a new record of VND32,870 ($1.42) per liter, having risen by 41 percent so far this year.

This was the seventh increase in a row since mid-April of the popular gasoline, which accounts for 70 percent of total fuel consumption in the country.

RON 92 biofuel also saw its price rising by 0.61 percent to VND32,370 per liter, having increased by 43.5 percent this year.

Diesel increased by 3.4 percent Tuesday.

Vietnam’s fuel stabilization fund, set up to contain price surges, is currently negative.

The government has cut the environmental tax on fuel by half to VND2,000 from April for the rest of the year, and is considering cutting it by another VND1,000.

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What this means

The continuous escalation of fuel prices in Vietnam, with RON 95 up 41% this year, presents a substantial challenge for retailers. This sharp rise directly impacts supply chain costs and reduces consumer disposable income, a situation exacerbated by the negative fuel stabilization fund. Unlike the strategic market entries and expansions seen with Panpuri, Tiffany, or Chipotle across Asia, this is an external cost pressure that retailers cannot easily absorb or offset. Expect retailers to pass on some costs to consumers or absorb margins. The current price trajectory, coupled with the government's limited tax reduction to date, suggests sustained pressure. We will be watching the next government decision regarding the additional VND1,000 environmental tax cut.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

What is the new record price for RON 95 gasoline per litre?

The new record price for RON 95 gasoline is VND32,870 ($1.42) per litre. This is a 1.54 percent increase on Tuesday and a 41 percent rise since the beginning of the year.

How many consecutive price increases have there been for RON 95 gasoline?

There have been seven consecutive price increases for RON 95 gasoline since mid-April. This popular fuel type accounts for 70 percent of Vietnam's total fuel consumption.

What measures has the government taken or considered to help stabilise fuel prices?

The government has already halved the environmental tax on fuel to VND2,000 from April for the rest of the year. They are also considering a further cut of VND1,000 to this tax.

Is the fuel stabilization fund effective in containing price surges?

The fuel stabilization fund, which was established to manage price surges, is currently in a negative state. Despite its purpose, it is not effectively containing the current increases.

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