Vietnam Weighs Retail Power Price Cut and 0% Gasoline Tax From November 2026

Overview

Deputy Prime Minister Nguyễn Văn Thắng chaired a 27 October 2026 meeting at the Government Office on gasoline and electricity price scenarios, directing EVN to prepare a cut in the average retail electricity price from 1 November 2026 through 31 March 2027 and the Ministry of Finance to review a 0% special consumption tax on gasoline for the same period. The directive touches PetroVietnam Power (POW, HOSE) directly through power pricing and indirectly frames the fuel-tax review for Petrolimex (PLX), PV Gas (GAS) and PetroVietnam Technical Services (PVS).

Key Facts

• Meeting held 27 October 2026 at the Government Office, chaired by Deputy Prime Minister Nguyễn Văn Thắng.
• EVN directed to review costs and build a plan to cut the average retail electricity price, applied from 1 November 2026 to 31 March 2027.
• The Ministry of Industry and Trade is to review and comment on EVN’s price plan to meet the 1 November 2026 deadline.
• The Ministry of Finance is to assess the legal basis, authority, impact and feasibility of cutting the special consumption tax on all gasoline grades to 0%.
• The gasoline tax review covers 1 November 2026 to 31 March 2027, with completion required before 1 November 2026.
• The stated rationale is social-security support for households and businesses.
• The article does not quantify the size of the electricity price reduction or the revenue cost of the gasoline tax cut.

What Happened

According to the government press report, Deputy Prime Minister Nguyễn Văn Thắng concluded the meeting by instructing Vietnam Electricity (EVN) to urgently review and recalculate its cost base, maximising savings, in order to produce a plan for lowering the average retail electricity price between 1 November 2026 and 31 March 2027. The directive requires compliance with the legal framework governing the electricity retail price mechanism and the timing of adjustments, and EVN must report to the Ministry of Industry and Trade for review and comment.

The Ministry of Industry and Trade was tasked with chairing opinions on EVN’s proposed average retail price so the November timeline can be met, and with escalating any matters beyond its authority. Separately, the Ministry of Finance was directed to lead coordination with the Ministries of Industry and Trade and Justice to review the legal basis, authority, full impact and feasibility of reducing the special consumption tax rate on all gasoline grades to 0% over the same five-month window, reporting to competent authorities for decision before 1 November 2026. The report does not disclose the fiscal cost of either measure.

Market Context

POW closed at VND 12,400 on 29 October 2026 on HOSE, with GAS at VND 76,000, PLX at VND 34,000 and PVS at VND 30,500. The directive lands at a sensitive point for the utilities and energy complex: power generators have been squeezed between input costs and administered retail prices, while fuel distributors and gas infrastructure names remain sensitive to any change in the tax wedge on petroleum products. A five-month, winter-and-Tết-window price intervention is consistent with the government’s pattern of using administered pricing to manage inflation and household costs rather than a structural reform of the electricity tariff.

Strategic Significance

For POW, the key question is whether a lower average retail price is absorbed by EVN’s own cost savings or passed upstream to generators through the power purchase agreement and capacity payment structure. A short, defined window through end-March 2027 limits the duration risk, but it reinforces the regulatory overhang on Vietnamese power equities: retail prices are set administratively, and generation margins depend on how the Ministry of Industry and Trade allocates the adjustment. For PLX and GAS, a 0% excise tax on gasoline would lower the pump price without necessarily compressing distributor margins, potentially supporting volumes; for PVS, the effect is indirect, running through upstream oil and gas activity rather than retail fuel demand. The absence of published fiscal costing means the market cannot yet price the revenue loss to the budget or the offsetting VAT and environmental protection tax treatment.

What to Watch

• EVN’s formal price plan submission to the Ministry of Industry and Trade ahead of the 1 November 2026 deadline.
• The Ministry of Finance’s report on the 0% gasoline excise tax, due before 1 November 2026, including any stated budget impact.
• Whether the electricity adjustment is implemented as a cut to the average retail price or a targeted support package, and how it flows to generators under existing PPAs.
• POW’s Q4 2026 and FY2026 results for evidence of pricing or dispatch effects.
• Any National Assembly or Standing Committee action needed if the tax change exceeds ministerial authority.