Gasoline prices are only adjusted immediately when they increase above 15%.

The Government issued Resolution 55 on March 19 to amend regulations on the gasoline price management mechanism in the context of strong fluctuations in the world energy market due to the Middle East crisis.

Accordingly, when the base price increases by 15% or more compared to the previous announced period, the price adjustment will be implemented immediately after the date of this increase. The administration and price announcement are chaired by the Ministry of Industry and Trade and implemented by the Ministry of Finance.

The 15% volatility level is wider than the 7% threshold currently applied under Resolution 36 – effective from March 6. Previously, the leader of the Department of Domestic Market Management and Development (Ministry of Industry and Trade) said that the price management mechanism would be revised to be closer to current developments. In fact, after Resolution 36 took effect, domestic gasoline prices were continuously adjusted, sometimes for 5 consecutive days.

In addition, the Resolution also adds an adjustment mechanism when world prices decrease. Specifically, domestic gasoline prices must be adjusted immediately after the day the base price decreases by 10% or more.

In case the base price increases below 15% or decreases below 10%, the management of gasoline prices will still follow current regulations in Decree 80/2023. According to this mechanism, the Ministry of Industry, Trade and Finance jointly regulates prices every 7 days (every Thursday). Retail prices can be increased, decreased or maintained if necessary, with the new price effective from 3:00 p.m. on the operating day.

Based on the elements constituting the base price and comments from the Ministry of Finance sent before 12:00 noon on the operating day, the Ministry of Industry and Trade will announce the base price and retail price of gasoline.

Tensions in the Middle East since the end of February are causing the global energy market to react more strongly than the escalation between Israel and Iran in the middle of last year. In that context, gasoline prices in Vietnam – a country that depends partly on imports – are also managed differently than before. The frequency of price adjustments is more frequent, the Stabilization Fund is released again and many policy tools are combined to cope with global energy fluctuations.

In addition to the price adjustment mechanism, at the meeting on support for stabilizing gasoline prices today, Prime Minister Pham Minh Chinh reiterated that the highest goal is to avoid shortages of energy, gasoline, disruption of supply chains, production and business, and reduce negative impacts on macroeconomic management.

Currently, Vietnam is preparing in advance in case the Petroleum Price Stabilization Fund is short in the context of a rapidly evolving and possibly prolonged global energy crisis. Accordingly, the Prime Minister agreed to advance the state budget from increased revenue in 2025 to the Petroleum Price Stabilization Fund. When the crisis passes, the operator will use the fund’s resources to return to the budget.

The Ministry of Finance was assigned to coordinate with the Government Office and the Ministry of Industry and Trade to complete the draft and request policies from competent authorities. Estimated time of application is until April 15. In case it lasts longer, the Government will monitor and report back to the competent authorities.