In order to ensure supply, control prices, and maintain stability in the domestic petroleum market, the Ministry of Industry and Trade plans to propose additional tax policies to support price stabilization amidst the unpredictable fluctuations in the Middle East.
The Ministry of Industry and Trade will propose additional tax solutions to help stabilize gasoline and diesel prices (Photo: Ministry of Industry and Trade's official website).
According to the Ministry of Industry and Trade, due to the impacts of the Middle East conflict, the domestic petroleum industry is facing a double impact. On the one hand, the supply of raw materials for production is disrupted; on the other hand, import activities are facing difficulties as many countries in the region are implementing export restrictions to protect domestic supply.
The input supply for the Nghi Son Refinery and Petrochemical Plant – which accounts for approximately 40% of domestic consumption – has also been significantly affected, increasing pressure to ensure fuel supply amidst volatile market conditions.
In this context, the Ministry of Industry and Trade has proactively developed response scenarios closely following developments in the global market. Most recently, based on the agency's recommendations, the Government issued a Decree reducing preferential import taxes on petroleum products to 0% to support businesses in accessing supply.
Previously, the agency also participated in policy management to optimize the price adjustment cycle, avoiding the situation of "cumulative shocks".
Currently, the domestic supply of petroleum products remains largely secure. Production at the Dung Quat Refinery increased by 10.5%, providing sufficient raw materials for production until the end of April and the beginning of May.
Meanwhile, the Nghi Son Refinery and Petrochemical Plant maintained production until the end of April. Imports also recorded a positive increase, making a significant contribution to stabilizing market supply.
Given the complex developments in the petroleum market, the Ministry of Finance recently proposed a 50% reduction in the environmental protection tax on gasoline (excluding ethanol) and diesel, bringing the tax rates down to 1,000 VND and 500 VND per liter, respectively.
According to the draft resolution currently under review, the aviation fuel tax is also proposed to be reduced from 1,500 VND to 1,000 VND per liter. If approved, the policy will take effect immediately upon issuance and will last until June 30th.
With this adjustment, retail gasoline prices could decrease by approximately 1,080 VND/liter, while diesel and aviation fuel prices could decrease by approximately 540 VND/liter (assuming the price components remain unchanged).
News summary.
