Vietnam May Lift Fuel Duties As War Hits Supplies

Vietnam is considering a plan to scrap tariffs on fuel imports, the government said, as the US-Zionist entity war with Iran disrupts oil supplies and pushes prices to their highest level since 2022.

The ministry of finance said Sunday it had drafted a decree that would slash import tax rates to zero on some petroleum products to “help stabilize the domestic market and ensure national energysecurity”.

“If the conflict continues and the blockade of the Strait of Hormuz persists, alternative supplies on the international market will become scarce and risk driving prices up,” it said in a statement, referring to the waterway through which a fifth of global crude usually passes.

Since the war began more than a week ago with US and Zionist strikes on Iran, prices of fuel in Vietnam have risen sharply and the government has implemented emergency pricing protocols.

The cost of the most widely used grade of gasoline has risen 21 percent to 27,040 Vietnamese dong ($1.03) per liter—the highest since July 2022, state media reported. Diesel prices have surged more than 50 percent.

Vietnam currently imposes tariffs of 10 percent on unleaded gasoline and seven percent on diesel, aviation fuel and kerosene—all of which would be temporarily removed under the new decree.

Vietnam has so far avoided mass shortages and long fuel lines, but state media reported that dozens of smaller petrol stations have either temporarily closed or shortened their operating hours due to dwindling supplies.