The Ministry of Finance recently submitted a draft to the Ministry of Justice for appraisal. This draft proposes extending Decree 72, which amends the Most Favored Nation (MFN) import tariff rates for certain petroleum products and input materials. MFN is the tariff rate applied to World Trade Organization (WTO) member countries.

From 9/3, import taxes on various petroleum products and blending materials, including naphtha, reformate, and condensate, were reduced from 7-10% to 0%. However, this regulation is set to expire on 30/4. The Ministry proposes extending the tax reduction policy until 30/6. The drafting agency also recommends expanding the list of items eligible for the 0% tax rate (instead of the current 5%) to include three product codes for raw materials used in production at the Nghi Son Refinery and Petrochemical complex.

According to the Ministry of Finance, businesses are currently negotiating shipments for May and June. The drafting agency stated, "This makes it difficult for businesses to develop import plans, sign contracts, and stabilize production, especially with the Middle East conflict's end date uncertain."

People refueling at a gas station in Hanoi, 3/2026. *Photo: Giang Huy*

The drafting agency noted that reducing preferential import tax on petroleum to 0% from early March allowed businesses to access alternative supplies. This was crucial as supply chains from traditional markets like South Korea and ASEAN were disrupted by military conflicts. Consequently, domestic supply was ensured, contributing to the stabilization of the petroleum market and macroeconomic conditions.

However, the military conflict in the Middle East remains complex and unpredictable. According to assessments from Vietnam National Petroleum Group (Petrolimex) and Binh Son Refining and Petrochemical Joint Stock Company (BSR), even if the military conflict ends, oil and gas infrastructure in the Middle East would require at least 5-7 weeks to restore full capacity. If the 0% MFN tax rate on petroleum products and input materials ceases to apply from late April, a supply shortage could re-emerge.

The Ministry estimates that extending the tax policy for two additional months will reduce budget revenue by approximately 997 billion VND, bringing the total revenue reduction since its implementation to 2.021 billion VND.

In addition to preferential import tax, other petroleum taxes, such as environmental protection tax, value-added tax (VAT), and special consumption tax, have also been reduced to 0% until the end of June, as per a National Assembly resolution.

Currently, one liter of RON 95-III gasoline (a common type in the market) costs 23,760 VND, and diesel costs 31,040 VND. These prices represent increases of nearly 18% and 61% respectively compared to late February, when the Middle East conflict escalated.

According to data from the Customs Department (Ministry of Finance), Vietnam spent nearly 3 billion USD on petroleum imports in the first quarter of the year, a 78% increase compared to the same period last year.

Phuong Dong