As of 3 PM today, the prices of gasoline and diesel in Vietnam have dropped significantly, with reductions ranging from 770 to 1,670 VND per liter. This price decline follows a global trend in the energy market, influenced by recent developments regarding a peace agreement between the United States and Iran, which has reopened shipping routes through the Strait of Hormuz.

The Ministry of Industry and Trade, along with the Ministry of Finance, reported that the global gasoline market has seen a decrease in prices over the past week. Specifically, the price of RON 95, which is used to produce E10 RON 95, has decreased by 5.8% to 104.4 USD per barrel, while diesel prices have dropped by 8.4% to 111.4 USD. Additionally, mazut prices have fallen by 13.1%, now at 455.7 USD per ton.

In Vietnam, the price of E10 RON 95-III has decreased by 840 VND, bringing it down to 19,910 VND per liter. Similarly, the price of E5 RON 92 has decreased by 770 VND, now at 19,350 VND per liter. This marks the lowest price level since the onset of the Middle Eastern conflict in late February. Diesel prices have also decreased by 1,670 VND, now approximately 21,860 VND per liter. The price of mazut has fallen by 1,650 VND compared to a week ago.

This adjustment reflects a significant drop of more than half from the peak price established on April 3, which was 44,780 VND per liter. Starting June 1, all RON 95 gasoline has been blended with 10% ethanol to create E10 before being sold on the market, while E5 RON 92 will continue to be maintained until the end of 2030.

During this adjustment, the authorities have also decided to allocate funds back into the fuel price stabilization fund, with a contribution of 300 VND for each liter of biofuel, diesel, and mazut, and 800 VND for diesel. The Ministry of Finance has proposed extending the exemption period for preferential import taxes, environmental taxes, and value-added taxes (VAT) on fuels until September 30, extending it by three months from the current regulations. However, the special consumption tax on gasoline will be reinstated starting July 1, with specific rates of 10% for regular gasoline, 8% for E5, and 7% for E10.

This move comes as global oil prices cool off, although the energy market still presents various risks. The Ministry of Finance has indicated that with this plan, the average fuel price is expected to increase by about 5%, impacting the consumer price index (CPI) by approximately 0.11 percentage points, which is significantly lower than the scenario of fully reinstating all tax rates. The state budget is projected to see a revenue decrease of around 15.4 trillion VND in the last three months of the third quarter.