Vietnam Extends 0% Petroleum Import Tax to June 30, Impacting PLX and BSR

Overview

The Vietnamese government has extended the 0% most-favored-nation (MFN) import tax on petroleum and blending materials until June 30, 2026, adding two months to the previous deadline. The policy, effective from March 9, was set to expire on April 30. The extension reduces state budget revenue by an estimated VND 997 billion but aims to secure supply for domestic refiners and importers, including Petrolimex (PLX) and Binh Son Refining and Petrochemical (BSR), amid ongoing Middle East conflicts.

Key Facts

• The 0% MFN import tax applies to gasoline, diesel, and blending materials (naphtha, reformate, condensate) until June 30, 2026.
• The extension reduces state budget revenue by an estimated VND 997 billion, bringing total revenue loss since implementation to VND 2,021 billion.
• The policy was originally set to expire on April 30, 2026, and has been extended by two months.
• Petrolimex (PLX) and BSR warn that even if Middle East conflicts end, oil infrastructure needs 5-7 weeks to restore capacity.
• Domestic gasoline prices (RON 95-III) currently stand at VND 23,750 per liter, diesel at VND 28,170, and mazut at VND 20,020.
• Other taxes on petroleum (environmental, special consumption, VAT) remain at 0% until end-June 2026 per National Assembly resolution.
• PLX closed at VND 40,000 (-0.50%) on April 15, 2026; BSR closed at VND 26,000 (-0.38%) on the same day.

What Happened

On April 30, the Vietnamese government issued a resolution extending the validity of Decree 72, which reduced MFN import tax rates on certain petroleum products and input materials to 0%. The extension runs until June 30, 2026, adding two months to the previous deadline. The Ministry of Finance estimates the two-month extension will reduce state budget revenue by approximately VND 997 billion.

The decision comes as supply chains from traditional markets like South Korea and ASEAN face disruptions due to military conflicts in the Middle East. According to Petrolimex and BSR, even if conflicts cease, oil and gas infrastructure in the Middle East would require at least 5-7 weeks to restore full capacity. Without the tax extension, supply shortages could reemerge.

Market Context

PLX, listed on HOSE, closed at VND 40,000 on April 15, down 0.50% on volume of 2.68 million shares. BSR, also on HOSE, closed at VND 26,000, down 0.38% on volume of 11.03 million shares. The extension supports both companies by reducing import costs and ensuring feedstock availability. However, the policy also pressures margins for domestic refiners like BSR, which compete with imported products. The broader energy sector remains sensitive to global oil price volatility and geopolitical risks.

Strategic Significance

The tax extension provides short-term cost relief for PLX, Vietnam’s largest petroleum importer and distributor, and for BSR, which operates the Dung Quat refinery. By maintaining low import taxes, the government ensures stable supply and price control, which is critical for inflation management. For long-term investors, the policy highlights the government’s willingness to intervene in energy markets to mitigate external shocks. However, the recurring extensions may signal structural reliance on imports and limited domestic refining capacity, which could affect BSR’s competitive positioning.

What to Watch

• Next policy review: Whether the government extends the 0% tax beyond June 30 or adjusts rates.
• Middle East conflict developments: Any escalation or resolution could impact global supply chains and domestic prices.
• Q2 2026 earnings reports from PLX and BSR: Margins and volume trends will reflect the policy’s impact.
• Domestic fuel price adjustments: The Ministry of Industry and Trade’s bi-monthly price reviews.
• Any changes to other petroleum taxes (environmental, VAT) after June 30.