Environmental protection taxes on fuels temporarily removed to curb price hikes
VGP - From March 26 until April 15, environmental protection tax rates on gasoline (excluding ethanol), diesel fuel and aviation fuel shall be cut to zero to stabilize domestic energy market, according to a decision signed by Prime Minister Pham Minh Chinh.
Prime Minister Pham Minh Chinh signed Decision 482/QD-TTg, dated March 26, 2026 on the application of environmental protection tax, value-added tax, and special consumption tax on gasoline, diesel, and aviation fuel when necessary for the national interest.
The conflicts in the Middle East have greatly affected the domestic fuel supply and market, causing gasoline and diesel prices to rise sharply in a short period of time, impacting the production and business activities of enterprises and the daily lives and incomes of the people
Given the situation, the Government decided to temporarily remove environmental protection taxes on gasoline (excluding ethanol), diesel fuel, and aviation fuel.
Gasoline, diesel fuel, and jet fuel will not be subject to value-added tax declaration or payment, though input VAT will remain deductible.
The excise tax rate on all types of gasoline is also reduced to zero percent.
The move is considered an urgent and effective solution to stabilize the petroleum market and ensure national energy security amidst the escalating conflict in the Strait of Hormuz, which is creating the "biggest energy bottleneck ever," pushing crude oil prices above US$100 per barrel and leading to a sharp increase in global and domestic energy prices.
The environmental protection tax, value-added tax, and special consumption tax, along with the application period as described above, will reduce state budget revenue by an average of approximately VND7,200 billion (US$270 million) per month.
The Ministry of Industry and Trade and the Ministry of Finance announced the price adjustment, effective from midnight on March 26.
Under the latest revision, price of E5 RON 92 petrol fell by VND 4,750 per liter to VND 23,320 (about US$0.93), while RON 95 price dropped by VND 5,620 per liter to VND 24,330 (about US$0.97).
Diesel prices decreased by VND 2,450 per litre to VND 35,440 (about US$1.42), while kerosene fell by VND 970 per litre to VND 35,380 (about US$1.42). In contrast, mazut rose by VND 1,500 per kg to VND 21,740 (about US$0.87).
On October 17, 2025, all members of the National Assembly Standing Committee approved a resolution on the 2026 environmental protection tax rates for gasoline, oil, and lubricants.
The resolution sets the environmental protection tax rates for gasoline, oil, and lubricants in 2026 at the same levels as those applied in 2025 under Resolution No. 60/2024 of the National Assembly Standing Committee-excluding jet fuel.
The environmental protection tax rates effective from January 1 to December 31, 2026 with tax rates ranging from VND600 (equivalent to US$0.02) for kerosene to VND2,000 (US$0.08) for gasoline. The resolution further stipulates that from January 1, 2027 onward, environmental protection tax rates for gasoline, oil, and lubricants will revert to the levels prescribed in Resolution No. 579/2018 dated September 26, 2018.
Since the conflicts in the Middle East broke out, Viet Nam has implemented a string of measures to ensure energy security.
