Gasoline and oil prices fall sharply thanks to tax reduction policies
After a period of strong fluctuations due to the conflict in the Middle East, domestic gasoline and oil prices have decreased sharply compared to the peak. Currently, the price of E5 RON92 gasoline is at 20,126 VND/liter, E10 RON95-III gasoline is 20,753 VND/liter, and diesel oil is 23,534 VND/liter.
From the peak recorded at the end of March and the beginning of April, the price of E5 RON92 gasoline decreased by 9,988 VND/liter, E10 RON95-III gasoline decreased by 10,667 VND/liter, while diesel oil decreased by 21,254 VND/liter. However, compared to the time before the Middle East conflict, the price of many petroleum products is still higher.
According to a representative of Mipec Petroleum Company, besides the developments of world oil prices, the sharp decrease in domestic gasoline prices in recent times is also thanks to a series of tax incentive policies being issued.
In Decree No. 72/2026/ND-CP, from March 9 to the end of April 30, 2026, the preferential import tax rate (MFN) for unleaded engine gasoline and gasoline blending materials is reduced from 10% to 0%; the tax rate for diesel oil, fuel oil, aircraft engine fuel and kerosine is reduced from 7% to 0%.
On April 30, the Government issued Resolution No. 25/2026/NQ-CP extending the application time of these tax rates until the end of June 30, 2026.
In addition, the National Assembly has issued Resolution No. 19/2026/QH16, effective from April 16 to the end of June 30, 2026, stipulating the reduction of environmental protection tax and value-added tax on gasoline, oil and aviation fuel to 0.
According to current regulations, the above-mentioned tax incentive policies will expire after June 30, 2026. If not extended, preferential import tax, environmental protection tax and value-added tax on gasoline and oil will return to the level applied before the support policies are issued.
Mipec representatives said that if all tax incentive policies expire from June 30, 2026 and the tax rates are restored to normal levels, gasoline and oil prices in the operating period on July 2, 2026 may increase very sharply.
According to businesses' calculations, the price of E10 gasoline may increase by about 4,800-5,200 VND/liter, E5 RON92 gasoline may increase by 4,300-4,600 VND/liter. 0.05%S diesel and 0.001%S diesel may increase by 2,000-2,400 VND/liter, while mazut oil may increase by 1,400-1,700 VND/kg.
Proposal to extend tax incentive policies until the end of September 2026
The Ministry of Finance has just issued Official Dispatch No. 8671/BTC-CST dated June 23, 2026 to ministries, ministerial-level agencies, People's Committees of provinces and centrally-run cities, Vietnam National Group of Industry and Energy, Vietnam National Petroleum Group and Vietnam Petroleum Association to request opinions on the draft Resolution on tax policies for some types of gasoline, oil, and raw materials for gasoline and oil production.
According to the Ministry of Finance, in order to solve urgent issues arising from practice related to gasoline and oil prices, the National Assembly and the Government have issued many tax policies to support the market.
Including Resolution No. 19/2026/QH16 of the National Assembly on environmental protection tax, value-added tax, special consumption tax on gasoline, oil and aviation fuel; Decree No. 72/2026/ND-CP amending the preferential import tax rate for some types of gasoline, oil, and raw materials for gasoline and oil production; and Resolution No. 25/2026/NQ-CP of the Government on extending the application period of Decree No. 72/2026/ND-CP.
Based on current regulations, Resolution No. 148/NQ-CP dated June 6, 2026 of the Government, proposals of the Ministry of Industry and Trade in Official Dispatch No. 4358/BCT-TTTN dated June 12, 2026 and regulations of the Law on Promulgation of Legal Documents No. 64/2025/QH15, the Ministry of Finance has developed a draft Resolution on extending the duration of applying preferential import tax, environmental protection tax, value-added tax on gasoline, oil, raw materials for gasoline, oil and aviation fuel according to simplified order and procedures.
According to the draft, the Government proposes to extend the deadline for applying preferential import tax on gasoline, oil, and raw materials for gasoline and oil production; and at the same time extend the deadline for applying environmental protection tax and value-added tax on gasoline, oil, raw materials for gasoline, oil and aviation fuel until the end of September 30, 2026.
The draft stipulates that the resolution takes effect from July 1, 2026 to September 30, 2026.
Regarding special consumption tax, the draft clearly states that special consumption tax on gasoline continues to be implemented according to the provisions of the Law on Special Consumption Tax No. 66/2025/QH15 and guiding documents for implementation.
The draft also stipulates that in case it is necessary to adjust the effective date of the resolution to meet the requirements of socio-economic development, ensure energy security and stabilize the gasoline and oil market, the Ministry of Industry and Trade will have proposals sent to the Ministry of Finance to submit to the Government for consideration and decision.
The Ministry of Finance requests agencies and units to contribute opinions on the draft dossier and send it to the Ministry before June 26, 2026 for synthesis, completion, and reporting to the Government.
