Petrol prices drop nationwide from July 1 due to VAT reduction
VOV.VN - Petrol prices across Vietnam have been reduced following the implementation of a 2% value-added tax (VAT) cut, starting July 1.
The Ministry of Industry and Trade and the Ministry of Finance jointly adjusted the retail prices of petrol and oil accordingly.
RON95-III, the most commonly used petrol in Vietnam, was revised down VND128 per to VND21,116/liter, while E5 RON92 was cut by VND101 to VND20,530/litre.
On the contrary, diesel 0.05S rose VND193 to VND19,349/litre, and kerosene went up VND141 to VND19,064/litre. Only fuel oil 180CST 3.5S dropped VND668 to VND16,955/kg.
Under Resolution No. 204/2025/QH15 passed by the National Assembly, the VAT on fuel has officially been reduced from 10% to 8% and will remain in effect until the end of 2026.
For the first time, petrol is included among the goods eligible for the VAT reduction. According to the Ministry of Finance, although petrol is subject to special consumption tax, it was still proposed for VAT reduction due to its critical role in production, business, and everyday life. Any changes in petrol prices directly affect domestic consumption, production, and macroeconomic stability.
Before the VAT cut came into effect, from 3:00 p.m. on June 26 to midnight on June 30, fuel prices had already been adjusted upwards in line with market changes. Diesel, for example, had seen the highest increase of 551 VND/litre during that time.
This marks the first decline in RON 95 prices after five consecutive increases, bringing prices down to their lowest level in four years, comparable to July 2021. Since the beginning of 2025, RON 95 prices have been adjusted 15 times up and 12 times down. Diesel prices have been raised 15 times and lowered 11 times.
In another development, Tran Ngoc Nam, deputy general director of Petrolimex, a leading petroleum firm, announced at a mid-year fuel supply conference held on June 25 that the firm supports the promotion of biofuel and plans to launch a trial of E10 petrol in Ho Chi Minh City starting August 1. The trial aims to assess technical impacts and customer demand before wider adoption.
E10 biofuel may be mandated nationwide starting January 1, 2026, as part of Vietnam’s clean energy transition. Minister of Industry and Trade Nguyen Hong Dien has directed the relevant agencies to develop and propose a detailed roadmap for mandatory E10 usage.
Petrol prices surge, RON 95 exceeds VND21,000 per litre
VOV.VN - In the latest price adjustment on June 19, domestic fuel prices saw a sharp increase, with RON 95 exceeding VND21,000 per litre.
