Viet Nam may activate petroleum price stabilization measures amid Middle East tensions
VGP - The Ministry of Industry and Trade (MoIT) proposed activating price stabilization measures if retail petroleum prices increase continuously within a month with a cumulative rise of 20 percent or more in order to control sudden price spikes and maintain market stability.
The proposal is included in a draft circular guiding the draft decree on petroleum trading. It specifies additional provisions on a price stabilization mechanism covering gasoline, bio-gasoline and diesel.
Under the draft circular, the stabilization mechanism would be considered when retail petroleum prices surge sharply within one month, with a cumulative increase of at least 20 percent. Such a spike, the ministry noted, could pose potential negative impacts on the macroeconomy, inflation and people's livelihoods.
Under the latest adjustment, from 3:00 p.m. on March 7, retail prices of petrol and oil products simultaneously increased sharply.
The price of E5 RON92 petrol is capped at 25,226 VND per litre (0.96 USD), up 3,777 VND per litre compared to the base price set on March 5 and remaining VND 1,821 per litre lower than RON95-III petrol.
The price of RON95-III petrol is set at no more than VND 27,047 per litre, up VND 4,707.
Meanwhile, 0.05S diesel oil is capped at VND30,239 per litre, a rise of VND7,207 per litre; kerosene at VND35,091 per litre, up VND 8,490; and the fuel oil mazut 180CST 3.5S at VND 21,327 per kilogramme, up VND3,831.In such cases, the Ministry of Industry and Trade will coordinate with the Ministry of Finance to analyze market developments and report to the Government for consideration and decision.
Price monitoring and evaluation would be based on retail prices announced by key petroleum traders — a representative group whose total output accounts for more than 70 percent of the market. After the Government issues a policy directive, the ministry will guide local authorities to implement price stabilization measures in accordance with the Law on Prices.
Currently, petroleum price stabilization in Viet Nam is implemented through a combination of supply–demand management and financial tools, including the Petroleum Price Stabilization Fund.
The fund was established in 2009 under Decree 84 on petroleum trading. It operates on the principle of accumulating funds when prices are low and disbursing them when prices are high in order to moderate market fluctuations.
In practice, when the base retail price of petroleum rises excessively, the use of the fund helps ease the price burden on consumers.
The fund is financed through a levy included in the retail price, paid by consumers at VND300 per litre. However, while the fund is managed by enterprises, decisions on its use are made by regulators — an inter-ministerial body comprising the Ministry of Industry and Trade and the Ministry of Finance — during each price adjustment cycle.
Since late 2023, however, the two ministries have neither set aside contributions to nor disbursed funds from the stabilization mechanism.
As of the end of the third quarter of 2025, the fund's balance stood at more than VND5.617 trillion. The five enterprises with the largest balances include Petrolimex with VND3.085 trillion, Dong Thap Petroleum with VND461 billion, Ho Chi Minh City Petroleum with VND328 billion, Thanh Le with VND391 billion, and Military Petroleum with VND300 billion.
In addition to price stabilization provisions, the draft circular retains the mechanism allowing key petroleum traders and distributors to independently announce and adjust retail prices within their distribution systems, except for fuel oil, which remains subject to wholesale pricing.
Enterprises will be required to declare prices and submit reports to the Ministry of Industry and Trade and local regulatory agencies through monitoring applications and software.
Retailers that are not part of the distribution networks of key traders or distributors will also be allowed to independently announce and adjust prices at their outlets. Their price declaration procedures will be similar to those applied to key traders and distributors.
When changing the method or principles used to calculate prices, petroleum trading companies must notify regulatory agencies before implementing the changes.
According to the Ministry of Industry and Trade, as of the end of February Viet Nam had 33 key petroleum traders, including five aviation fuel traders and two refining and petrochemical producers. The market also has around 250 distributors, nearly 25 percent fewer than three years ago.
For 2026, the Ministry of Industry and Trade has allocated a minimum total petroleum supply of nearly 31.8 million cubic meters/tons to enterprises.
The ministry said the country's fuel supply for March is "basically secured," while urging gasoline businesses not to hoard fuel or restrict sales amid rising global oil prices driven by escalating tensions in the Middle East.
According to state-owned Petrovietnam, Viet Nam's crude oil production is currently about 180,000 barrels per day, with approximately 150,000 barrels per day supplied to the Dung Quat refinery.
In addition to domestic production, fuel distributors continue importing refined petroleum products, though import and transportation costs are increasing.
"Together with circulating reserves required at enterprises, gasoline supply for the domestic market in March is basically ensured," the ministry said.
However, officials warned that if the conflict in the Middle East persists into April, the domestic market could face greater supply pressure and higher costs.
The Prime Minister also established a task force to ensure national energy security, while the Ministry of Industry and Trade has formed a specialized working group to monitor developments and propose policy responses./.
