HCMC – The Vietnamese Government has just reduced import tariffs on several petroleum products to 0% from March 9 through April 30 this year, to bolster supply and stabilize the domestic market amid U.S.-Israel attacks on Iran and Iranian countermeasures.
Issued under Decree 72/2026, this urgent policy amends the Most Favored Nation (MFN) tariff rates for both finished fuels and raw materials.
Specifically, the MFN rate for unleaded motor gasoline (such as RON 95) and blending materials is cut from 10% to 0%, while taxes on diesel and jet fuel are lowered from 7% to 0%. Other inputs for gasoline blending and petrochemicals, including naphtha, reformate, and condensate, are also subject to the new 0% rate.
The decree remains in effect from the date of signing until April 30 this year. Should an extension be necessary, the Ministry of Industry and Trade would submit a proposal to the Ministry of Finance before it goes to the Government.
This move comes as the U.S.-Israel military conflict with Iran has left severely negative impacte on global oil business. Notably, the blockade of the Strait of Hormuz has disrupted the transport of approximately 20 million barrels of crude oil daily from the Middle East to refineries, particularly in Asia. This has forced regional refineries to cut capacity and limit exports, driving fuel prices higher.
Domestically, Vietnamese refineries face potential shortages of imported crude oil, risking the fulfillment of existing delivery contracts. While most of Vietnam’s fuels currently come from ASEAN and South Korea under 0% FTA rates, the tightening global supply has made sourcing from these markets increasingly difficult.
