HCMC – The Ministry of Finance has proposed cutting the environmental protection tax on gasoline and diesel by 50%, which could result in lower retail fuel prices.
Under a draft resolution open for public feedback, the tax on gasoline (excluding ethanol) would fall from VND2,000 to VND1,000 per liter, while diesel would drop from VND1,000 to VND500. Jet fuel tax is proposed at VND1,000 per liter, down by VND500, according to the ministry.
The ministry said that the tax is embedded in retail prices. With the proposed cut, gasoline prices could decrease by about VND1,080 per liter, including the impact of value-added tax. Diesel and jet fuel could fall by around VND540 per liter.
Actual retail prices will depend on global fuel trends, as domestic prices are largely linked to international refined fuel markets.
The ministry estimated the measure could reduce state budget revenue by about VND1.79 trillion per month. It described the proposal as a way to support households and businesses facing rising costs.
Earlier this month, import tariffs on fuel were reduced to 0% through the end of April, a move expected to cut budget revenue by more than VND1 trillion.
