Vietnam Proposes Zero Percent Fuel Tariffs as Middle East Conflict Drives Gasoline Prices to Four Year Highs

Vietnam proposes cutting fuel import taxes to zero as gasoline prices hit a 2022 high. New decree aims to stabilize markets during the ongoing Iran conflict.

By: AXL Media

Published: Mar 9, 2026, 4:08 AM EDT

Source: The information in this article was sourced from CNA

Emergency Tariff Reductions Targeted at Stabilizing Volatile Energy Markets

Vietnam is moving toward a radical restructuring of its energy import costs as the escalating conflict in the Middle East threatens to paralyze global oil transit. On Sunday, the Ministry of Finance unveiled a draft decree aimed at slashing import tax rates to zero on several key petroleum products. According to the ministry, this measure is a direct attempt to stabilize the domestic market and safeguard national energy security against a backdrop of dwindling international supplies. The proposal arrives as a necessary intervention to shield the Vietnamese economy from the hyperinflationary pressures triggered by the current geopolitical instability.

Strait of Hormuz Blockade Risks Creating Severe Global Crude Scarcity

The primary driver behind Hanoi’s fiscal urgency is the continued threat to the Strait of Hormuz, a critical maritime artery through which roughly twenty percent of the world’s crude oil passes. Government officials expressed deep concern that a persistent blockade of this waterway will make alternative international supplies nearly impossible to secure. The Finance Ministry stated that if the military standoff continues, the resulting scarcity will likely drive global prices beyond the reach of developing economies. This strategic vulnerability has forced Vietnam to reconsider its revenue goals from fuel duties in favor of maintaining essential supply chains.

Rapid Price Surges Impact Daily Transport Costs in Hanoi and Beyond

Since the commencement of US and Israeli strikes on Iran just over a week ago, Vietnamese consumers have faced an immediate and aggressive spike at the pump. State media reports indicate that the most common grade of gasoline has jumped to 27,040 Vietnamese dong per litre, representing a staggering 21 percent increase in a matter of days. This price point mirrors the extreme market conditions of July 2022, effectively erasing several years of relative price stability. The government has already triggered emergency pricing protocols, but officials admit that tax relief is the next logical step to prevent further economic contraction.