The Ministry of Industry and Trade and the Ministry of Finance jointly adjusted retail fuel prices from 3 p.m. on June 18. At the same time, contributions to the Fuel Price Stabilization Fund were set at 200 VND per liter for biofuel gasoline, 800 VND per liter for diesel and 650 VND per kilogram for mazut.

Following the adjustment, the price of E5 RON92 gasoline was capped at 20,126 VND per liter, down 1,206 VND per liter. E10 RON95-III gasoline was capped at 20,753 VND per liter, down 1,307 VND per liter compared with prices announced during the June 11 adjustment.

Diesel 0.05S was capped at 23,534 VND per liter, down 2,343 VND per liter, while mazut 180CST 3.5S was capped at 16,680 VND per kilogram, down 1,928 VND per kilogram.

In a statement released on June 18, the Ministry of Industry and Trade said global fuel markets during the latest pricing period were influenced by a range of factors.

Most notably, the United States and Iran signed a memorandum on a peace agreement aimed at ending their conflict, restoring maritime activities through the Strait of Hormuz and resuming Iranian crude oil exports.

Meanwhile, the U.S. Energy Information Administration (EIA) reported another decline in U.S. crude oil inventories. At the same time, the International Energy Agency (IEA) warned of a potential global oil surplus due to slower demand growth relative to supply. Military conflict between Russia and Ukraine also continued.

According to the ministry, these developments contributed to a downward trend in global refined fuel prices in recent days.

Earlier, from June 1, more than 17,000 fuel stations across Vietnam switched to selling E10 gasoline. During the first 15 days of nationwide implementation, total E10 consumption reached nearly 500 million liters, while E5 gasoline consumption totaled nearly 40 million liters.

The ministry has also requested the Vietnam Register under the Ministry of Construction to review technical standards, regulations, testing procedures and certification requirements for gasoline-powered vehicles. The review will examine the compatibility of vehicles with biofuels and propose a technical roadmap for increasing ethanol blending ratios in conventional gasoline in the future.

Fuel prices fall sharply from their peaks

Notably, since geopolitical tensions erupted in the Middle East on February 28, fuel prices have experienced unprecedented volatility.

Vietnam’s fuel pricing authorities have adjusted prices 24 times during the period - the highest adjustment frequency on record - as prices surged continuously and reached historic highs in late March and early April before beginning a steep decline.

E5 RON92 gasoline has now fallen by 9,988 VND per liter from its peak of 30,114 VND per liter recorded on March 24. E10 RON95-III gasoline has dropped by 10,667 VND per liter from its peak reached on April 23. Diesel prices have fallen even more dramatically, dropping 21,254 VND per liter from their peak of 44,788 VND per liter on April 3.

Compared with prices on February 26, before geopolitical tensions escalated in the Middle East, diesel remains 4,255 VND per liter higher, while E5 and E10 gasoline prices are 603 VND and 933 VND per liter higher, respectively.

In addition to movements in global oil prices, the sharp decline from peak levels has also been supported by swift and flexible government intervention.

When fuel prices began rising sharply, the Fuel Price Stabilization Fund was activated repeatedly, with total spending estimated at around 5.3 trillion VND (US$202 million) in March alone.

For the first time, the state budget also advanced 8 trillion VND (US$305 million) to the Fuel Price Stabilization Fund under Decision No. 483 dated March 27. These measures helped curb the pace of fuel price increases during March and early April.

At the same time, preferential import tariffs on certain petroleum products were reduced to 0% from March 9 through June 30, 2026.

From March 26 through June 30, 2026, environmental protection taxes on gasoline (excluding ethanol), diesel and aviation fuel were reduced to zero. These products were also exempt from value-added tax declarations and payments while still allowing input tax deductions. Special consumption tax on gasoline was likewise reduced from 8-10% to zero.

According to data updated by the Ministry of Industry and Trade on June 18, retail fuel prices in Vietnam remain significantly lower than those in neighboring countries.

For gasoline, Vietnam’s retail price stands at 20,753 VND per liter, compared with 36,228 VND in Laos, 33,236 VND in Thailand, 33,948 VND in China and 29,955 VND in Cambodia.

For diesel, the retail price in Vietnam is 23,534 VND per liter, compared with 31,376 VND in Thailand, 30,743 VND in Cambodia, 30,893 VND in China and 30,048 VND in Laos.

Tam An