HCMC – The Ministry of Finance (MOF) has proposed slashing the most favored nation (MFN) tariff on petroleum products to 0% to ensure domestic supply and price stability amidst global energy volatility.
This proposal, sent to the Ministry of Justice for appraisal, aims to mitigate the impacts of Middle East conflicts, specifically the disruptions of oil exports via the Strait of Hormuz.
The MOF suggests reducing the MFN rate from 10% to 0% for unleaded motor gasoline (including HS codes 2710.12.21 through 2710.12.25) and gasoline blending stocks like naphtha and reformate. Additionally, import duties for diesel, fuel oil, jet fuel, and kerosene are proposed to drop from 7% to 0%.
Other petrochemical inputs, such as xylene and condensate, would see tariffs fall from 3% to 0%. The Ministry of Industry and Trade (MoIT) recommended these adjustments be applied until April 30 this year to diversify supply sources beyond traditional Free Trade Agreement (FTA) partners like ASEAN and South Korea.
The MOF estimates that these tax cuts could result in a state budget revenue loss of approximately VND1.024 trillion, based on 2025 import figures. However, the move is deemed essential for national energy security and supporting “double-digit” economic growth targets.
This urgent policy follows a sharp retail price hike on March 7, which saw RON95-III gasoline climb to over VND27,000 per liter and diesel surge to over VND30,000 per liter, marking the 11th price adjustment since the beginning of 2026.
