Gasoline and oil prices both increased

According to the adjustment of the Ministry of Industry, Trade and Finance, the price of RON 95-III gasoline (a popular type on the market) increased by 330 VND, to 25,570 VND per liter. In contrast, E5 RON 92 is reduced by 450 VND, with a new price of 22,500 VND.

Oil products (except fuel) increased by 550-2,520 VND per liter depending on type compared to the previous operating period. Specifically, each liter of diesel and kerosene has a new price of 27,020 VND and 26,930 VND, respectively.

This is the third consecutive operating period in which inter-Ministries have used the Price Stabilization Fund for petroleum products. Accordingly, RON 95-III gasoline, kerosene and fuel oil all have a budget cost of 4,000 VND, while diesel oil costs 5,000 VND per liter.

Gasoline and oil prices change as follows:

Unit: VND/liter or kg, depending on type.

In a telegram on March 12, Prime Minister Pham Minh Chinh assessed that the conflict situation in the Middle East is seriously affecting the global energy supply chain. Future developments are forecast to continue to be complicated, with the risk of supply chain disruption and energy flow. This may affect the price and supply of domestic gasoline and oil.

The Prime Minister requested the Ministry of Industry and Trade, Finance and other agencies to accelerate the replenishment of national petroleum reserves and complete the mechanism for exporting and issuing reserves to respond to emergencies.

Currently, mandatory reserves at key enterprises ensure 20 days of supply according to regulations. At a meeting earlier this week, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that Vietnam has not yet had to use national reserves – which are only used in cases of import shortages or serious declines in domestic production.

He affirmed that the operator has a response scenario and domestic petroleum resources are enough to meet consumption demand until the end of March.

The government also uses tax and fee tools to support the market. Currently, the preferential import tax (MFN) on gasoline and some mixing materials has been reduced to 0%. This is a solution to stabilize supply, helping key businesses have more motivation to seek and import petroleum from markets that do not have a free trade agreement (FTA) with Vietnam.

The Ministry of Finance is submitting to the Government a plan to adjust the environmental protection tax on gasoline to 0 VND on March 12. Currently, this tax rate is 2,000 VND per liter for gasoline (except ethanol) and 1,000 VND for oil. Bringing this tax to 0 VND will help reduce gasoline prices by 1,000-2,000 VND per liter.

World fuel prices on March 11 tend to increase or decrease depending on the product compared to the previous day. Each average barrel of RON 95 gasoline increased by 1.4% to 129.2 USD; Diesel added nearly 2%, mazut decreased by 1.7%.