Hanoi, April 12, 2026 – The Europe Today: The National Assembly of Vietnam has approved a sweeping resolution to reduce multiple fuel-related taxes to zero, aiming to stabilise domestic energy prices amid ongoing global market volatility.
The measure received overwhelming support, with all 460 deputies present—representing 92 per cent of the legislature—voting in favour on April 12.
Under the resolution, environmental protection taxes on petrol (excluding ethanol), diesel, kerosene, mazut, and aviation fuel will be reduced to zero đồng per litre. Additionally, value-added tax (VAT) obligations on these fuels have been removed, while still permitting input VAT deductions. The special consumption tax on petrol has also been cut to zero per cent.
The tax relief measures will remain in effect from April 16 to June 30, 2026.
Lawmakers have authorised the government to adjust the duration or revise tax provisions in urgent circumstances, depending on developments in global energy markets. Any such changes must be reported to the National Assembly in its nearest session.
During the implementation period, the resolution will take precedence over any conflicting tax regulations. Businesses and importers will not be required to declare or pay VAT at the sale or import stages for the specified fuels.
Minister of Finance Ngô Văn Tuấn stated that the government had incorporated feedback from deputies and relevant agencies in finalising the draft, noting broad consensus in support of the tax cuts.
In international markets, oil prices have experienced their sharpest weekly decline since 2022. West Texas Intermediate (WTI) crude dropped from $112.06 per barrel to $96.57, marking a decline of 13.7 per cent, while Brent crude fell from $109.3 to $95.20 per barrel, a decrease of 13 per cent.
Analysts attributed the decline to expectations of diplomatic progress between the United States and Iran, although geopolitical uncertainties persist, particularly concerning restricted oil flows through the Strait of Hormuz.
Domestically, Vietnam has already witnessed significant reductions in retail fuel prices. Diesel recorded the steepest drop, falling by approximately VNĐ12,000 per litre over the past week. Meanwhile, E5RON92 and RON95-III petrol prices also declined notably.
The temporary tax cuts are intended to cushion the impact of global price fluctuations, support businesses, and ease the financial burden on consumers across the country.
