The Vietnamese government has issued Decree No. 72/2026 adjusting preferential import tariff rates on several petroleum products and raw materials used in fuel production, aiming to help businesses secure supply and stabilize the domestic fuel market.

Rising tensions in the Middle East, particularly the conflict involving the US, Israel and Iran, have significantly affected global energy markets, especially shipping activity through the Strait of Hormuz - a strategic route for transporting crude oil from the region.

Disruptions along this route have directly impacted Asia, a region heavily dependent on crude oil supplies from the Middle East.

In response, the government introduced Decree No. 72/2026 to revise preferential import tariffs for several gasoline products, fuel types and raw materials used in gasoline production. The measure aims to enable businesses to proactively diversify import sources and help maintain stable domestic fuel supplies.

The decree amends preferential import tariff rates for certain petroleum products and inputs listed in Appendix II of the preferential import tariff schedule under the existing tax classification system.

Specifically, the preferential import tax for unleaded gasoline has been reduced from 10 percent to zero. The adjustment applies to several HS codes including 2710.12.21 for unblended gasoline, 2710.12.22 for gasoline blended with ethanol, 2710.12.24 for unblended gasoline, and 2710.12.25 for gasoline blended with ethanol.

Import duties on gasoline blending components such as naphtha and reformate (HS code 2710.12.80) have also been reduced to zero percent.

Preferential import tariffs have also been cut from 7 percent to zero for diesel fuel, fuel oil, aviation fuel and kerosene.

In addition, several petrochemical inputs including xylene, condensate and p-xylene will see tariff reductions from 3 percent to zero, while other cyclic hydrocarbons will have their tax rates reduced from 2 percent to zero.

The decree took effect on March 9 and will remain valid until April 30.

After the decree expires, the preferential import tariffs on these fuel products and raw materials will revert to the rates specified in Decree No. 26/2023 issued on May 31, 2023.

In cases where urgent requirements arise to ensure socio-economic development and maintain fuel market stability, the Ministry of Industry and Trade may propose extending the decree’s validity. The proposal would be submitted to the Ministry of Finance for consolidation before being presented to the government for approval through a new regulatory resolution.

Tran Thuong