Under the latest adjustment by the Ministry of Industry and Trade and the Ministry of Finance, retail fuel prices were significantly reduced from 10 p.m. on March 11.

The price of RON95 petrol fell by nearly VND3,900 to about VND25,200 per litre, while E5 RON92 declined by more than VND3,600 to around VND22,900 per litre.

Diesel and other petroleum products were also cut sharply, by VND4,240 – 7,960 per litre or kilogram depending types, except for kerosene oil.

The steep reduction came just about 24 hours after the previous adjustment, when petrol prices had risen dramatically and approached VND30,000 per litre, creating a notable swing in the domestic fuel market within a short period.

According to market regulators, the latest decrease reflects the rapid cooling of global crude oil and refined fuel prices in recent days. After a surge driven by geopolitical concerns, international oil prices have eased, allowing domestic retail prices to be adjusted downward.

In addition to global market movements, authorities also made substantial use of the fuel price stabilization fund to curb retail prices. In this adjustment cycle, the fund was tapped at around VND4,000–5,000 per litre for certain products, helping bring petrol prices down significantly.

The combination of declining global oil prices and the use of the stabilisation fund resulted in a sharp drop in domestic petrol prices, pulling the retail level back to around VND25,000 per litre.

At a meeting with the energy security task force on the evening of March 10, Prime Minister Pham Minh Chinh approved the use of the fuel price stabilisation fund, with the measure taking effect immediately from March 11.

Earlier, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the Government had mobilised around four million barrels of oil from partners to ensure short-term supply.

With this volume of crude oil and additional supplies expected in the coming period, the supply of petroleum products is estimated to be sufficient for approximately 30–45 days of consumption, depending on the production plans of domestic refineries and market demand, he said.

The Government is also using tax and fee instruments to support the market. The Most Favoured Nation (MFN) import tariff on gasoline and several blending components has now been reduced to zero.

This measure is intended to stabilise supply and give fuel importers greater incentives to seek and import fuel from markets that do not yet have free trade agreements with Vietnam.

Meanwhile, the Ministry of Finance is submitting a proposal to the Government to cut the environmental protection tax on fuel to zero as early as March 12.

Currently, the tax stands at VND2,000 per litre for petrol (excluding ethanol) and VND1,000 per litre for oil products. Reducing the tax to zero could lower fuel prices by around VND1,000–2,000 per litre.

Analysts say the sharp swings in two consecutive price adjustments highlight how sensitive the energy market remains to geopolitical developments and shifts in global supply and demand. With international oil markets still volatile, Vietnam’s fuel prices may continue to fluctuate in line with global energy trends in the coming adjustment periods.

Vietnam has no immediate need to tap national petroleum reserves

VOV.VN - Vietnam currently has no immediate need to draw on its national petroleum reserves, as existing supplies are sufficient to meet domestic demand until the end of March, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said.