Market regulators propose cutting fuel import tariffs to 0%
VOV.VN - The Ministry of Finance has proposed reducing the Most Favoured Nation (MFN) import tariff on several petroleum products and input materials to 0% in response to potential global supply disruptions.
According to a draft dossier submitted to the Ministry of Justice for appraisal, the proposal comes amid escalating tensions in the Middle East and the blockade of the Strait of Hormuz, a key global oil shipping route.
The blockade has disrupted the flow of roughly 20 million barrels of crude oil per day from Middle Eastern producers such as Iran, Iraq, the United Arab Emirates, Saudi Arabia and Kuwait. As a result, several refineries across Asia have been forced to reduce output, draw on reserves and limit exports of refined petroleum products, raising concerns about potential supply shortages.
The situation has also created difficulties for some domestic refineries, which may face challenges securing crude oil imports needed to fulfill existing supply contracts.
Currently, most of Vietnam’s fuel imports come from ASEAN countries and the Republic of Korea with 0% tariffs under free trade agreements. However, as regional supply tightens, access to these markets may also become more constrained.
Following a proposal from the Ministry of Industry and Trade, the Ministry of Finance suggests cutting the MFN tariff on unleaded motor petrol and petrol blending components from 10% to 0%. Import tariffs on diesel, fuel oil, jet fuel and kerosene are also proposed to be reduced from 7% to 0%.
In addition, tariffs on several petrochemical feedstocks, including xylene, condensate and p-xylene, would be lowered from 3% to 0%, while tariffs on other cyclic hydrocarbons would drop from 2% to 0%.
According to estimates by the drafting agency, if the new tariff rates were applied based on 2025 import turnover, state budget revenue could decrease by about VND1.024 trillion.
The proposed decree is expected to take effect from the date of signing until April 30, 2026. If an extension is required, the Ministry of Industry and Trade will submit a proposal for the Ministry of Finance to review and report to the Government for consideration.
PM orders stable fuel and power supply as global energy risks rise
VOV.VN - Prime Minister Pham Minh Chinh has instructed relevant agencies, particularly the Ministry of Industry and Trade, to ensure stable supplies of fuel and electricity, warning that shortages could threaten economic stability as global energy markets are volatile.
