Vietnam considers scrapping fuel import tariffs to stabilise domestic prices as Middle East conflict disrupts global supplies and pushes costs higher.
HANOI: Vietnam is considering a plan to eliminate import tariffs on fuel. The finance ministry said the move aims to stabilise the domestic market and ensure national energy security.
It drafted a decree to slash import tax rates to zero on some petroleum products. The proposal must still be approved by the government.
The measure is a response to supply disruptions from the US-Israeli war with Iran. Prices for the most widely used gasoline grade have risen 21% to 27,040 Vietnamese dong (US$1.03) per litre, the highest since July 2022.
“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,” the ministry said in a statement. The strait is a vital waterway for global crude shipments.
The crisis has sent crude prices soaring to nearly US$120 a barrel. This marks the highest level since Russia’s invasion of Ukraine in early 2022.
Since the war began over a week ago, Vietnam has implemented emergency pricing protocols. The proposed tariff decree would be effective until the end of April if approved.
