Vietnam plans to scrap fuel import curbs to keep supply flowing

Published Mon, Mar 9, 2026 · 12:43 PM

[HANOI] Vietnam will remove import tariffs on fuel and make it easier for state giant PetroVietnam to buy and sell crude and oil products, as an expanding war in the Middle East heightens energy-security worries.

Disruptions in the Persian Gulf, home to some of the world’s largest oil and gas producers, have been a major headache for import-dependent Asia, especially for more price-sensitive emerging economies which immediately feel the pain from higher costs and have less flexibility to pay up for emergency supplies.

Vietnam’s government said on Friday (Mar 6) that domestic supply remains “basically secured’ for now, but warned that if the conflict continues into April, the “market may face more difficulties”.

It has also sought to prioritise crude for local refineries to meet domestic demand, and has asked the Ministry of Industry and Trade to take proactive measures to ensure adequate supplies.

The apparent loosening of some controls and of the import quota system around PetroVietnam – formally, Vietnam National Industry-Energy Group – will allow the company more flexibility to balance supply and demand, according to Pham Luu Hung, chief economist at SSI Securities.

Vietnam’s crude oil production currently averages about 180,000 barrels per day, a fraction of the country’s consumption. Most of this output is supplied to Dung Quat Refinery, which the government said late last week is operating stably at around 118 per cent of capacity, maintaining that level at least until the end of April.

Meanwhile, Nghi Son Refinery and Petrochemical is also running steadily, ensuring supply for major distributors under contracts that run through the end of March.

Retail fuel prices have risen sharply after Vietnam hiked petrol prices twice in three days. RON-95 petrol, the most commonly used, climbed to 27,040 dong (S$1.32) per litre from 20,151 dong at the end of February, while kerosene and diesel rose to more than 30,000 dong per litre, the highest levels since 2019, according to news website VnExpress. Diesel prices are up almost 57 per cent from late last month.

Dozens of petrol stations in Hanoi have temporarily halted sales or shortened operating hours after the sharp price increases prompted consumers to race to fill their tanks, news website Dan Tri reported. BLOOMBERG