The Vietnamese government has recently decided to extend tax incentives for aviation fuel and oil for an additional three months, which will last until December 31, 2026. This extension includes maintaining a 0% import tax and environmental protection tax for these fuels, as outlined in Resolution 43/2026/NQ-CP issued on September 30, 2026.

These tax benefits are crucial as they help mitigate the rising costs of fuel, which have seen significant increases in recent months. For instance, the price of E5 RON 92 gasoline rose by 1,260 VND per liter to 26,390 VND, and E10 RON 95-III increased by 1,450 VND per liter to 27,080 VND during the last adjustment on September 24. Diesel prices also saw an uptick, reaching 30,490 VND per liter.

Given that fuel costs typically account for 38-45% of total operational expenses for airlines like Vietjet, the continuation of these tax incentives will help prevent additional financial burdens in the fourth quarter. The government’s decision comes at a critical time as airlines prepare for increased service frequency during the high-demand holiday season.

Furthermore, the government has indicated a willingness to adjust the duration of these tax policies as needed to support economic development and ensure energy security. This flexibility allows for potential future changes in response to market conditions.

Overall, while the extension of these tax incentives does not introduce new benefits compared to the previous quarter, it plays a vital role in stabilizing operating costs for airlines amidst fluctuating global fuel prices.