Vietnam is contemplating a complete removal of tariffs on fuel imports. The government announced a drafted decree to slash import tax rates to zero on certain petroleum products. This move aims to stabilize the domestic market and secure national energy security.
The decision comes as the US-Iran conflict disrupts global oil supplies, pushing prices to their highest levels since early 2022. The ministry of finance stated that continued conflict and potential blockades of the Strait of Hormuz could lead to scarce international supplies and further price hikes.
Gasoline prices in Vietnam have already surged 21 percent, reaching approximately $1.03 per liter, the highest since July 2022. The proposed tariff suspension would be in effect until the end of April, pending government approval. Global crude prices have neared $120 a barrel due to the Middle East crisis.