Vietnam has cut the special consumption tax on all types of petrol to 0% from 1 November 2026 until the end of 31 March 2027, under Government Resolution 45/2026/NQ-CP signed by Deputy Prime Minister Nguyen Van Thang on 31 October, VietnamPlus reported. The tax had been 10% on mineral petrol and 7-8% on biofuel blends, according to VnExpress. After the cut, E10 RON 95-III petrol fell by nearly 1,600 dong to 24,150 dong a litre.
What the resolution says
- The special consumption tax rate on petrol is 0% from 1 November 2026 to 31 March 2027.
- The previous petrol rates under Article 3 of National Assembly Resolution 19/2026/QH16, as amended by Clause 2, Article 3 of Government Resolution 43/2026/NQ-CP, cease to apply.
- If the period needs to be shortened or extended for economic, energy-security or market-stability reasons, the Ministry of Industry and Trade will propose changes through the Finance Ministry to the government.
Why the government acted
Average inflation reached 4.52% in the first nine months, just above the full-year target of around 4.5%, VnExpress said. The government blames mainly higher oil prices caused by the Middle East conflict, supply disruptions and damage to refineries; global crude stayed above $110 a barrel in the third quarter. Even after the cut, E10 RON 95-III remains about 4,330 dong a litre, or nearly 22%, more expensive than at the end of February, when the conflict began.
Economist Ngo Tri Long told VnExpress that with little room left to curb inflation, lower power prices and petrol tax would reduce production and living costs. Nguyen Tien Thoa, chairman of the Vietnam Valuation Association, told the government news portal that the tax cut could lower petrol prices by about 1,500-1,700 dong a litre, and that keeping full-year inflation at 4.5-5% would count as a success.
The cost, compiled by KBVN+
| Item | Figure |
|---|---|
| Tax on mineral petrol before 1 Nov | 10% |
| Tax on biofuel petrol before 1 Nov | 7-8% |
| Tax from 1 Nov 2026 to 31 Mar 2027 | 0% |
| E10 RON 95-III after the cut | 24,150 dong/litre (down nearly 1,600) |
| Spent on fuel tax and fee cuts so far this year | About 64,000 billion dong |
| Planned for the petrol tax cut in the last two months of 2026 | About 4,000 billion dong |
| Extra room to control inflation (petrol tax plus power price cut) | About 0.07 of a percentage point |
The budget and inflation figures were given by Deputy PM Thang on 30 October, according to VnExpress. Earlier this year the government also cut the environmental protection tax on fuel to 0 dong and suspended VAT filing on fuel until year-end. A separate 2% cut in average retail electricity prices took effect on the same day.
What comes next
The 0% rate runs to 31 March 2027 but can be shortened or extended. The Finance Ministry is modelling 2026 inflation at 4.5% or 4.8%. For background, see KBVN+'s 27 October report on the Deputy Prime Minister's request.