Vietnam has temporarily waived an environmental tax on fuel to cut soaring petrol prices by more than a quarter as of Friday, according to the country’s trade ministry, citing disruptions to global energy supplies caused by the Middle East war.
The environmental protection tax rate for gasoline, diesel, and aviation fuel has been slashed to zero from Friday until April 15.
“This is considered an urgent and effective solution to stabilise the petroleum market and ensure national energy security amidst the escalating conflict in the Strait of Hormuz, which is creating the ‘biggest energy bottleneck ever’,” the trade ministry said in a statement.
Ministry figures show that the move brings petrol prices down by approximately 26% and reduces diesel prices by just over 15%, providing relief after fuel costs skyrocketed earlier this week.
Effective Friday, the price of 95-octane petrol was lowered to 24,332 dong per litre, down from 32,957 dong. Diesel prices have also been adjusted to 35,440 dong per litre.
The Vietnamese government previously adjusted fuel prices twice on Wednesday as diesel costs had more than doubled since the conflict began late last month.
The partial closure of the Strait of Hormuz by Iran has sent global oil prices spiralling and sparked widespread fears of energy shortages.
