Flexible management, closely following world price fluctuations
In the context of a strongly volatile global energy market, the management of domestic gasoline and oil prices is being implemented in a more flexible direction to closely follow the developments of the world market, while ensuring domestic supply and demand stability.
According to Mr. Tran Huu Linh, Director of the Domestic Market Management and Development Department (Ministry of Industry and Trade), previously domestic gasoline and oil prices were regulated periodically every week, on Thursday. The price adjustment was calculated based on the base price of world gasoline and oil in the period of the previous regulation period.
However, when the conflict in the Middle East caused world gasoline prices to fluctuate sharply, increasing and decreasing suddenly every day, even every hour, the fixed-cycle management mechanism has revealed certain limitations.
Faced with this situation, the Ministry of Industry and Trade has reported and been allowed by Prime Minister Pham Minh Chinh to apply a more flexible price management mechanism according to Resolution No. 36/NQ-CP dated March 6, 2026 on the regular Government meeting in February 2026. Accordingly, if world gasoline and oil prices fluctuate abnormally, increasing by over 7%, management agencies can consider managing prices early, even on a daily basis. At the same time, the use of the gasoline and oil price stabilization fund is also being implemented to reduce the impact on the market.
Reality shows that, thanks to a flexible operating mechanism along with spending and using the Price Stabilization Fund at a level of about 4,000 VND/liter of gasoline and 5,000 VND/liter of diesel oil, domestic gasoline and oil prices have gradually stabilized in recent days. This measure not only helps closely monitor the developments of the world market but also creates motivation for businesses to proactively import goods sources, while reducing people's panic and hoarding.
Mr. Tran Huu Linh also said that gasoline and oil import activities always have a certain delay, usually from 3-4 days. Therefore, domestic price management must still be based on the base price of the days immediately preceding it. This is an important principle to ensure that price management both closely follows the developments of the world market and is consistent with the actual operation of the domestic market.
In fact, there are times when people see domestic gasoline prices still at a high level even though the world price of that day has decreased. The reason is that price management must be based on the base price of the previous days in the calculation cycle. Therefore, if the world price was high in previous days, the domestic price at the time of management may still be higher. Conversely, when world prices decrease, people will also benefit from this downward trend in the following days" - Mr. Linh said.
Flexible price management according to market developments will help more closely reflect the fluctuations of world gasoline and oil prices. Management agencies also hope that businesses and people will understand the current management mechanism, because this is a timely and necessary solution in the context of the global energy market being highly volatile.
Notably, before spending, the gasoline and oil price stabilization fund still has about more than 5,600 billion VND. With a spending level of 4,000 VND/liter of gasoline and 5,000 VND/liter of oil, this fund can only support price stabilization for about 15 days if it continues to maintain the current spending level.
Therefore, the Ministry of Industry and Trade is coordinating with the Ministry of Finance to develop plans to submit to the Prime Minister for consideration, including the possibility of advance or allocation of contingency funds in case world gasoline and oil prices continue to be complicated. At the same time, the two ministries are also studying and proposing to the Government to report to the National Assembly Standing Committee to consider reducing environmental protection tax on gasoline and oil in order to supplement more fiscal tools to stabilize the market.
Increase gasoline and oil reserves to ensure energy security
In addition to price management, the issue of improving gasoline and oil reserve capacity is also being raised as an urgent requirement to increase the ability to respond to fluctuations in the world energy market. This is also an important lesson for continuing to study solutions to improve reserve capacity, diversify supply sources and increase the ability to respond to market fluctuations in the coming time.
At the meeting of the Task Force to ensure energy security in the face of the complex developments of the military conflict in the Middle East recently, Prime Minister Pham Minh Chinh directed ministries and sectors to urgently develop new plans for gasoline and oil reserves to ensure energy security, especially in the context of the world market having many unpredictable fluctuations.
The gasoline and oil reserve plan is considered on a number of main pillars. The first is national reserves. Accordingly, it is necessary to calculate the expansion of the reserve system, while strengthening resources for national reserves, including mobilizing the participation of manufacturing enterprises and state-owned gasoline and oil wholesale enterprises.
Second is commercial reserves. Currently, according to regulations, key enterprises must maintain a minimum reserve level equivalent to 20 supply days, while distribution enterprises must ensure 5 days of reserves. In the coming time, along with completing new regulations in the decree on gasoline and oil business, management agencies will strengthen inspection and supervision to ensure that enterprises strictly implement commercial reserve obligations according to regulations.
In addition, the management agency is also studying other reserve options, including proactive supply in the international market. The goal is to ensure crude oil and input materials for domestic gasoline and oil production activities when fluctuations or conflicts occur in the world energy market.
