Gasoline and oil prices increase, aviation industry proposes to apply fuel surcharge

Xuyên Đông |

High gasoline and oil prices, the Civil Aviation Authority of Vietnam proposes applying aviation fuel surcharges to domestic air tickets with flexible adjustment mechanisms.

Aviation fuel supply situation in Vietnam

Currently, Vietnam has 5 aviation fuel suppliers. According to reports from Skypec and Petrolimex Aviation, these units ensure the supply of gasoline and oil to airlines until March 31, 2026 according to plan and contract.

Although the units have deployed purchases to serve April 2026.

However, suppliers in Singapore, Thailand, and China are delaying delivery for many reasons and may immediately apply the Force majeure clause (Force Majuere) to terminate the contract.

Therefore, the risk of aviation fuel shortages supplying Vietnamese airlines right from the beginning of April 2026 and the following months is present.

Currently, Skypec, Petrolimex Aviation, Tapetco are looking for other suppliers, accepting high prices to serve the production and business plan in April 2026 and the following months, however, in the current context, finding a new supplier is difficult to achieve.

In addition, domestic supply from two oil refineries, Nghi Son and Dung Quat, is also difficult to immediately increase JetA1's production capacity because it is still necessary to balance with other petroleum products to ensure the operation of the economy.

Furthermore, according to Petrolimex Aviation, these factories also have maintenance plans in March and April 2026 and are expected to temporarily suspend operations for 10 days/month.

Proposal to pass a 50% fee reduction policy in the aviation sector like during the COVID-19 period

Faced with complex developments, to minimize the impacts of increasing fuel prices and ensure the ability to maintain operations of Vietnamese airlines, the Civil Aviation Authority proposed that the Ministry of Construction soon propose to relevant ministries and sectors and report to the Government and National Assembly on a number of contents:

Proposing the National Assembly Standing Committee to consider exempting 100% of environmental protection tax for gasoline and oil until the end of May 2026.

Adding aviation fuel to the list of goods eligible for VAT reduction from 10% to an appropriate level.

Allowing the application of aviation fuel surcharges for domestic air tickets with a flexible adjustment mechanism according to actual aviation fuel prices.

Direct relevant ministries and sectors to consider adjusting the ceiling price on domestic routes if necessary to maintain aviation operations.

Establish a high-level working mechanism with countries with export restriction policies (such as Thailand, China) to create conditions for Vietnamese aviation fuel suppliers to implement signed Jet A-1 fuel purchase contracts as well as future purchases.

Through a 50% fee reduction policy in the aviation sector such as take-off and landing fees, flight operations (similar to the COVID-19 period).

The Civil Aviation Authority proposed that the Ministry of Finance continue to study mechanisms to support taxes and fees related to aviation businesses.

The State Bank of Vietnam has financial support policies, increasing credit limits, and increasing L/C guarantees for Vietnamese aviation fuel suppliers to ensure supply and aviation transport enterprises to supplement necessary resources to maintain operations.

The Ministry of Industry and Trade promotes the expansion of supply to the market; directs domestic oil refineries (Dung Quat, Nghi Son) to maximize Jet A-1 production capacity and supply Vietnamese airlines at reasonable prices.

The Ministry of Foreign Affairs supports working with countries and international aviation authorities to create favorable conditions for gasoline and oil suppliers to access cargo sources and Vietnamese airlines to maintain historical slots.

The Ministry of Culture, Sports and Tourism continues to support tourism promotion and advertising for potential markets with impressive growth like the first months of the year.

The Ministry of Public Security strengthens security and order assurance in airport areas.

Gasoline prices rise

Previously, Lao Dong Newspaper reported on March 9 that world gasoline and oil prices are on a very strong upward trend.

WTI oil and Brent oil both exceeded 116 USD/barrel. This is the highest price since August 2022, when the oil market suffered a supply shock after the Russia-Ukraine conflict.

Meanwhile, retail gasoline and oil prices in the country today according to the price list announced by Petrolimex in region 1 and region 2 are as follows:

Giá xăng dầu trong nước ngày 9.3 theo bảng giá công bố của Petrolimex.
Domestic gasoline and oil prices on March 9 according to the price list announced by Petrolimex.
Xuyên Đông
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