Vietnam Cuts Special Consumption Tax on Gasoline to 0% Through March 2027

Overview

The Vietnamese government issued Resolution 45/2026 on 31 October, signed by Deputy Prime Minister Nguyễn Văn Thắng, setting the special consumption tax on all gasoline grades to 0% from 1 November through 31 March 2027. The measure applies to Petrolimex (PLX) on HOSE and the wider fuel complex including OIL, BSR, PVD, PVS and GAS, and follows a similar 0% window that ran from late March to the end of June 2026.

Key Facts

• Resolution 45/2026, dated 31 October, sets the special consumption tax rate on gasoline at 0% from 1 November 2026 to 31 March 2027.
• Statutory rates under the Special Consumption Tax Law effective 1 July are 10% for conventional gasoline, 8% for E5 and 7% for E10.
• The government estimates the cut could reduce pump prices by approximately 1,500-1,700 VND per liter.
• Current retail prices cited in the article: E10 RON 95-III at 25,730 VND per liter and E5 RON 92 at 26,020 VND per liter.
• The environmental protection tax on gasoline and oil remains at 0 VND per liter, and the VAT exemption for these items is extended through the end of 2026.
• The government may shorten or extend the policy window on the proposal of the Ministry of Industry and Trade, routed through the Ministry of Finance.
• The government also directed EVN to cut retail electricity prices by 2% through March 2027, alongside a 4.5% inflation target stated in the National Assembly session on 31 October.

What Happened

Deputy Prime Minister Nguyễn Văn Thắng signed Resolution 45/2026 on 31 October, according to the government’s announcement. The resolution sets the special consumption tax rate on gasoline to 0% for the period from 1 November 2026 to 31 March 2027. The government reserved the right to shorten or extend the window to meet socio-economic development goals, energy security and fuel-market stability, with the Ministry of Industry and Trade empowered to propose adjustments to the Ministry of Finance for submission to the government.

The policy reverses, temporarily, the rates set under the Special Consumption Tax Law that took effect on 1 July: 10% for conventional gasoline, 8% for E5 and 7% for E10. A comparable 0% window ran from late March to the end of June 2026. The article notes that the environmental protection tax on gasoline and oil remains at 0 VND per liter and that these goods are also exempt from VAT declaration and payment under a policy extended through the end of 2026. Speaking at the National Assembly’s socio-economic discussion session on 31 October, Thắng said the government targets inflation at 4.5% amid pressure from external conflicts and geopolitical volatility.

Market Context

Petrolimex (PLX) closed at 34,000 VND on 31 October on HOSE, with BSR at 27,600 VND, PVD at 17,950 VND and OIL at 13,000 VND. The resolution lands after a period in which fuel retailers have already operated under a zero environmental protection tax and a VAT exemption, meaning the incremental price effect at the pump is layered on top of existing relief rather than introduced from a clean baseline. The accompanying directive for EVN to cut retail electricity prices by 2% signals a broader cost-of-living package aimed at the 4.5% inflation target rather than an energy-sector-specific intervention.

Strategic Significance

The direct effect on PLX is a margin question rather than a volume question. Special consumption tax is a pass-through item collected at the pump, so a 0% rate lowers the absolute dong margin per liter unless the company’s fixed per-liter commission structure is adjusted; the article does not state whether the pricing formula’s margin component will be revised. For BSR, the refinery, the tax sits downstream of the ex-refinery price and should be broadly neutral, while lower pump prices could support consumption volumes. The larger signal is policy direction: the government has now used the special consumption tax as a counter-cyclical stabilisation tool twice within a year, which introduces regulatory risk into long-term fuel-demand and pricing assumptions for the entire listed energy complex.

What to Watch

• The Ministry of Industry and Trade’s next fuel price adjustment cycle and the actual per-liter reduction at the pump versus the 1,500-1,700 VND estimate.
• Any revision to the per-liter margin component in the retail pricing formula, which determines whether PLX absorbs or passes through the tax cut.
• Ministry of Finance guidance on whether the 0% window will be extended beyond 31 March 2027.
• EVN’s implementation of the 2% retail electricity cut and any knock-on effect on GAS and PVS demand assumptions.
• Q4 2026 and Q1 2027 earnings disclosures from PLX and BSR for evidence of volume and margin effects.