On March 9, Director of the Civil Aviation Authority of Vietnam Uong Viet Dung chaired a meeting with agencies and units in the aviation industry on plans to respond to the impacts of fuel price increases due to conflicts in the Middle East.
Reporting at the meeting, Mr. Bui Minh Dang - Head of Aviation Transport Department, Civil Aviation Authority of Vietnam - said that in the face of the complicated developments of the Middle East war situation, JetA1 fuel price (not crude oil price) has tripled compared to the time before the conflict occurred. This makes it difficult for airlines when costs will increase by 60-70%.
Petroleum suppliers also face difficulties in ensuring the maintenance of fuel supply for air transport activities in Vietnam.
In addition, the increase in diesel oil prices also has a significant impact on the operations of airports.
At the meeting, representatives of gasoline and oil importing units said that they have all sought sources of supply in the immediate future. However, up to this point, it is still extremely difficult due to the global impact.
Mr. Tran Minh Tuan - General Director of Vietnam Aviation Fuel Co., Ltd. (Skypec) - informed that currently, the unit's fuel source mainly imports from Singapore, Thailand, China (accounting for about 70-80% of the supply) and domestically at Dung Quat and Nghi Son oil refineries (about 20-30%).
Regarding the amount of goods, Mr. Tuan affirmed that he will ensure fuel supply for airlines until March 31, 2026 and has placed orders for demand in April 2026. However, in the coming time, the company will have to continue to monitor the developments of the Middle East region.
Faced with this situation, Mr. Tuan proposed that the Civil Aviation Authority recommend that domestic and foreign airlines must optimize fuel use plans.
Companies must have relatively accurate production commitments in the months 3-5. 2026 so that units can be proactive in terms of goods and finance. If this fuel is not used up as committed, there needs to be support policies with Skypec.
According to Mr. Nguyen Quang Trung - Deputy General Director of Vietnam Airlines, if the fuel price increases by about 200 USD/barrel, the operating costs of airlines may double. "At that time, the more you fly, the more you lose," Mr. Trung said.
To remove immediate difficulties, representatives of Vietnam Airlines proposed that competent authorities consider exempting environmental protection tax on aviation fuel.
In addition to allocating slots in Vietnam, the airline also proposed that the Civil Aviation Authority of Vietnam have a voice with international aviation authorities to apply flexible mechanisms similar to the COVID-19 epidemic period.
Representatives of Vietnam Airports Corporation (ACV) said that they have requested airports to review existing gasoline and oil resources and increase reserves to ensure that airport operations are not interrupted.
ACV will accompany units, comprehensively review, balance resources and develop a suitable common plan, ensuring fairness and efficiency in the exploitation process" - ACV representative said.
Concluding the meeting, Director of the Civil Aviation Authority of Vietnam Uong Viet Dung said that the current situation poses many major challenges for the aviation industry.
However, in "danger" there is "opportunity", difficulties also have opportunities for agencies and units in the industry to share the same will and determination to find appropriate solutions to maintain growth momentum.
The Director requested agencies and units to urgently send reports and specific proposals for the Civil Aviation Authority of Vietnam to summarize the situation, assess the current situation, and develop recommendations and solutions to submit to competent authorities for consideration.
In the immediate future, support policies and mechanisms need to be considered to be extended until the end of May.
For domestic fuel supply units, it is necessary to make efforts to maintain production and business plans, ensuring supply for aviation operations.
Airlines need to properly implement contract commitments, proactively review and develop appropriate operating plans, limit excessive dependence on Middle Eastern markets and strictly fulfill payment obligations to fuel suppliers.
The Director also requested airport operating units to study reasonable arrangement and coordination to reduce costs and optimize operating conditions for airlines.
Regarding policy recommendations, the Civil Aviation Authority of Vietnam will propose to the Ministry of Construction to report to the Government for consideration of appropriate support mechanisms; propose to the State Bank to manage stable monetary policy, consider relaxing credit limits to support gasoline and oil importing enterprises and airlines.
