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

Overview

Vietnam’s government has cut the special consumption tax on all gasoline grades to 0% from November 1, 2026 through March 31, 2027, under Resolution 45 signed by Deputy Prime Minister Nguyễn Văn Thắng. The policy forgoes roughly VND 4,000B in budget revenue for November-December 2026 and directly affects listed fuel distributors and refiners including Petrolimex (PLX), PVOIL (OIL) and Bình Sơn Refining (BSR).

Key Facts

• Special consumption tax on all gasoline types set at 0%, effective November 1, 2026 to March 31, 2027, per Resolution 45.
• Government forgoes approximately VND 4,000B in revenue for the November-December 2026 period alone.
• The tax was cut from 7% to 0% under the current schedule; the underlying Law on Special Consumption Tax 66/2025/QH15 sets standard rates at 10% for regular gasoline, 8% for E5 and 7% for E10.
• Cumulative tax and fee relief on petroleum products since the start of 2026 is estimated at VND 64,000B, according to Deputy Prime Minister Nguyễn Văn Thắng.
• In the October 31, 2026 pricing cycle, E5RON92 was capped at VND 24,223/litre (down VND 1,804) and E10RON95-III at VND 24,159/litre (down VND 1,575).
• Environmental protection tax on gasoline and oil is currently VND 0/litre, and preferential import tariffs on certain petroleum products are 0% through December 31, 2026.
• The Ministry of Industry and Trade may propose shortening or extending the resolution’s effective period, in coordination with the Ministry of Finance.

What Happened

The policy was formalised through Resolution 45, signed by Deputy Prime Minister Nguyễn Văn Thắng, establishing a 0% special consumption tax rate on all gasoline grades for the November 1, 2026 to March 31, 2027 window. The resolution includes a mechanism allowing the Ministry of Industry and Trade to propose adjustments to the duration, routed through the Ministry of Finance to the government, in order to meet socio-economic targets and energy security requirements.

Speaking at a National Assembly session on October 31, Deputy Prime Minister Nguyễn Văn Thắng said the government has allocated roughly VND 64,000B since the start of 2026 for tax and fee reductions on petroleum. The November-December portion of the new measure is estimated at VND 4,000B, reflecting the drop from 7% to 0%. This is not the first such intervention: the special consumption tax on gasoline was previously cut to 0% between March 26 and April 15, 2026. The article was published by Tiền phong.

Market Context

Petrolimex (PLX) closed at VND 34,000 on October 31, 2026 on HOSE, while PVOIL (OIL) closed at VND 13,000 and Bình Sơn Refining (BSR) at VND 27,600. The tax cut arrives alongside a broader petroleum tax-relief programme and a 0% environmental protection tax, meaning retail pump prices are being supported by multiple overlapping instruments. For distributors, lower retail prices can support volume but compress absolute margins per litre; for refiners, the special consumption tax sits downstream of the refinery gate, so direct earnings impact is limited.

Strategic Significance

The strategic read is that Hanoi is prioritising energy-cost relief and consumption support over budget revenue through the first quarter of 2027, a period that spans the Lunar New Year demand peak. For PLX and OIL, the policy supports retail throughput and defends market share against informal channels, but it does not resolve the structural margin question: distributor profitability depends on the pricing formula set by the Ministry of Industry and Trade, not on the tax rate itself. For BSR, the relevant variable remains the crack spread and crude slate, not the retail tax line. Investors should treat this as a demand-support measure rather than an earnings upgrade for the sector.

What to Watch

• Ministry of Industry and Trade proposals to shorten or extend the resolution’s effective period before March 31, 2027.
• Monthly retail price management cycles and whether the 0% rate is fully passed through to pump prices.
• PLX and OIL fourth-quarter 2026 volume and margin disclosures in their Q4 filings.
• BSR gross refining margin and crack spread commentary in its next quarterly release.
• Any reinstatement of the environmental protection tax or import tariffs after December 31, 2026.