Vietnam mulls over removing fuel duties as West Asia conflict hits supplies

Vietnam considers zero import duties on fuel to stabilize prices amid rising costs due to the West Asia conflict.

“Vietnam is considering a plan to scrap tariffs on fuel imports,” the government said, as the U.S.-Israeli war with Iran disrupts oil supplies and pushes prices to their highest level since 2022.

The Ministry of Finance said on Sunday (March 8, 2026) it had drafted a decree that would slash import tax rates to zero on some petroleum products to "help stabilise the domestic market and ensure national energy security".

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"If the conflict continues and the blockade of the Strait of Hormuz persists, alternative supplies on the international market will become scarce and risk driving prices up," it said in a statement, referring to the waterway through which a fifth of global crude usually passes.

Since the war began more than a week ago with U.S. and Israeli strikes on Iran, prices of fuel in Vietnam have risen sharply and the government has implemented emergency pricing protocols.

The cost of the most widely used grade of gasoline has risen 21% to 27,040 Vietnamese dong ($1.03) per litre — the highest since July 2022, state media reported. Diesel prices have surged more than 50%.