Vietnam Cuts Fuel Prices Sharply, Kerosene Drops Over 4,000 VND per Liter

Vietnam has implemented a significant reduction in fuel prices nationwide, offering temporary relief to consumers and businesses amid ongoing global energy fluctuations.

The latest adjustment, effective from March 25, saw all major fuel categories decline, with kerosene recording the steepest drop of more than 4,000 VND per liter.

Across the board price cuts

Under the new pricing:

E5 RON 92 gasoline is capped at 28,075 VND per liter, down over 2,000 VND
RON 95 gasoline falls to 29,957 VND per liter, a drop of nearly 3,900 VND
Diesel declines by around 1,700 VND to 37,899 VND per liter
Kerosene sees the largest reduction, down more than 4,100 VND to 36,355 VND per liter
Fuel oil also decreases by over 2,300 VND per kilogram

The adjustments apply to widely used fuel products across the country.

Price stabilization fund plays key role

The government’s fuel price stabilization fund was actively deployed to cushion the impact of global market swings.

Support levels reached up to 4,000 VND per liter for diesel and around 3,000 VND for other fuel types. Without this intervention, domestic fuel prices would have been significantly higher.

Authorities estimate the fund still holds approximately 613 billion VND, providing some buffer for future adjustments.

Global pressures remain

Despite the current price drop, underlying pressures persist.

Global oil markets remain volatile due to geopolitical tensions and supply concerns. At the same time, exchange rate movements between the Vietnamese dong and the US dollar continue to influence import costs.

In this adjustment cycle, the base price of RON 95 fuel declined by more than 10 percent, triggering regulatory mechanisms that allowed for the use of stabilization funds.

What it means for consumers and businesses

Lower fuel prices can help ease transportation and logistics costs, offering short term relief for both households and businesses.

However, given the broader volatility in global energy markets, the current decrease may not signal a long term trend.

Authorities have indicated they will continue monitoring developments closely and adjust pricing policies as needed.

The bottom line

Vietnam’s latest fuel price cut provides timely relief, but it is largely supported by government intervention rather than a fundamental shift in global supply conditions.

For businesses and consumers alike, the outlook remains uncertain, with fuel prices likely to continue fluctuating in response to external factors.