Unprecedented Dip in Vietnam’s Gasoline Prices: Lowest Rate Since March Amid Falling Global Petroleum Market

On Thursday afternoon, gasoline prices in Vietnam plunged to their lowest levels since March 5, marking the fifth consecutive session of declines. The most commonly used fuel, RON95, dipped 0.69% to VND22,880 (US$0.87) per liter.

Fuel Price Drops

Biofuel E5 RON92 experienced a decline of 0.45%, bringing its price down to VND21,830 per liter. Diesel prices also fell significantly, with a decrease of 4.17% to VND26,690.

Global Factors Influencing Prices

The international petroleum market has been impacted by ongoing conflicts in the Middle East over the past two days. The peace negotiations between the United States and Iran have made little headway, and tensions have risen in the Strait of Hormuz, leading to global fluctuations in fuel prices. Globally, the price of RON95 has increased by 0.5%, while diesel prices have dropped by 3.8%.

Government Interventions

In an effort to control prices, the Vietnamese government has eliminated several taxes on gasoline, including the environmental protection tax, special consumption tax, and value-added tax.

Presently, import tariffs on petroleum and blending materials are set at 0%. However, this measure is slated to expire on April 30. The Ministry of Finance is currently proposing an extension of this tax reduction until June 30.