Finance ministry proposes zero import tariff on petroleum amid Middle East tensions

Specifically, the ministry suggested import tariff for RON 95 gasoline should be reduced to zero percent from current 10 percent.

Import tariff for diesel and aviation fuel should be reduced to zero percent from current 7 percent, said the ministry.

In addition, import tariff for such input materials such as naphtha, reformate, condensate should be reduced to zero percent.

The proposed tax rates are expected to take effect from the date of signing until April 30, 2026.

The closure of the Hormuz Strait disrupted the movement of around 20 million barrels of crude oil per day from major Middle Eastern producers, including Iran, Iraq, the United Arab Emirates, Saudi Arabia, and Kuwait. As a result, a number of refineries across Asia have reportedly reduced output, relied on reserves, and limited exports of refined petroleum products, raising concerns over possible supply shortages.

The situation may also pose challenges for domestic refineries, which could face difficulties in securing sufficient crude oil imports to meet existing supply contracts.

At present, the majority of Viet Nam's fuel imports come from ASEAN countries and the Republic of Korea, where tariffs are already 0 percent under free trade agreements. However, tightening regional supply could make access to these sources more limited.

Domestic price hikes

Domestic retail fuel prices were increased on Saturday following a surge in global oil prices and intensified foreign exchange pressures amid growing Middle East tensions, the Ministry of Industry and Trade and the Ministry of Finance said in a joint statement.

The retail price of E5RON92 biofuel rose by VND3,777 (around US$0.14) to a maximum of VND25,226 per liter, remaining VND1,821 lower than RON95-III gasoline.

The price of RON95-III gasoline increased by VND4,707 to VND27,047 per liter.

Meanwhile, diesel 0.05S saw the steepest rise, climbing VND7,207 to a ceiling of VNĐ30,239 per liter, while kerosene increased by VND8,490 to a maximum of VND35,091 per liter.

Mazut oil price rose by VND3,831 to no more than VND21,327 per kg./.