Vietnam Petrol Excise Tax at 0% and Power Price Cut: What Changes

 

 

What changed on 1 November

On 31 October 2026 the Vietnamese government announced two measures that lower energy costs. Both apply from 1 November. They are not visa or work-permit rules. They do change fixed costs for anyone who drives in Vietnam or runs a shop, restaurant, office or factory.

Item	Change	Period
Petrol excise tax	0% on all types of petrol	1 Nov 2026 to 31 Mar 2027
Average retail electricity price	Down 2% to VND 2,159.90 per kWh (excluding VAT), a fall of about VND 44	From 1 Nov. The government told EVN to keep the cut in place until 31 Mar 2027

 

 

Petrol: what a 0% excise rate means

Under the Law on Special Consumption (Excise) Tax, in force since 1 July, petrol was taxed at 10% for regular petrol, 8% for E5 and 7% for E10. Resolution 45/2026, signed on 31 October by Deputy Prime Minister Nguyen Van Thang, sets all of these to 0%. A similar 0% rate applied from late March to the end of June 2026, so this is the second time.

Current retail prices are VND 25,730 per litre for E10 RON 95-III and VND 26,020 for E5 RON 92. VnExpress estimates the tax cut could lower prices by about VND 1,500-1,700 per litre. As a rough illustration, a vehicle using 50 litres a month would save about VND 75,000-85,000. That is our own arithmetic, not a figure from the reports. The articles do not say when or how fully the cut will reach pump prices, so check the price boards at the station.

Two related points. The environmental protection tax on petrol is already VND 0 per litre. The policy exempting petrol and oil from VAT declaration and payment has been extended to the end of 2026. The sources say nothing about 2027 for either one [needs verification].

 

 

Electricity: the first cut in almost 20 years

Vietnam Electricity (EVN) said the average retail price drops from just over VND 2,204 to VND 2,159.90 per kWh. The average price has risen since the mechanism began in 2007, when it was VND 842. This is the first fall in almost 20 years. That count excludes five Covid-19 relief reductions, which together were worth nearly VND 17,000 billion.

The average price is the basis for the specific tariffs for residential, production and business customers. Before the cut, the residential tariff had six progressive tiers. It ran from VND 1,984 per kWh for the first 50 kWh to VND 3,460 per kWh above 400 kWh a month, excluding VAT. The articles do not give the new unit price for each customer group or tier [needs verification]. Check your next bill or EVN’s notice.

 

 

Who is affected

• Expats and residents: Fuel costs for a car or motorbike may fall slightly. The average electricity cut is only 2%, so a household is unlikely to notice much.
• Restaurants, cafes and retailers: Check whether your business tariff has changed. If your landlord re-bills electricity to you, check that the lower price is passed through.
• Manufacturers and logistics firms: Fuel and power costs both fall, so you can update your cost models. Planning as if the cuts were permanent is risky.

For Korean nationals: No special treatment applies. The changes cover everyone who buys petrol or electricity in Vietnam.

 

 

Why now, and for how long

The motive is inflation control. Deputy Prime Minister Thang told the National Assembly that the government is aiming for 4.5% inflation this year. He said the electricity cut and the 0% petrol rate together create about 0.07 percentage points of room. The petrol tax cut will cost about VND 4,000 billion over the last two months of the year. Support through fuel-related tax and fee cuts has passed VND 64,000 billion since the start of the year.

The resolution says the government may shorten or extend the petrol measure. If an adjustment is needed, the Ministry of Industry and Trade proposes it to the Ministry of Finance, which submits it to the government. So whether rates return to 10%, 8% and 7% after 31 March 2027 depends on a later decision. The articles also give no details on electricity pricing after March [needs verification].

 

 

What to do

1. Compare the unit prices on your November fuel receipts and electricity bill with the previous month.
2. If your lease re-bills electricity, ask the landlord how the unit price is set.
3. Build your 2027 budget for two cases: rates restored and rates extended.
4. Ask a local accountant or tax adviser whether the changes affect your accounting or tax treatment.

Rates and tariffs can change by government decision. Check the official texts, Resolution 45/2026 and EVN’s announcements, from time to time.

 

 

Frequently asked questions

Until when does the 0% petrol excise tax apply?

From 1 November 2026 to 31 March 2027. The government may shorten or extend the period, taking into account economic and social conditions, energy security and oil market stability.

How much is electricity going down?

The average retail price falls 2% to VND 2,159.90 per kWh, excluding VAT. The articles do not give the new unit prices for residential, production or business customers, so check EVN’s notice or your bill.

How much cheaper will petrol be?

The reports estimate a fall of about VND 1,500-1,700 per litre at current price levels. The timing and size of the actual pump-price change should be checked at the station.

Sources

• Thuế tiêu thụ đặc biệt với xăng về 0%
• Giá điện giảm 2% từ ngày 1/11
• Phó thủ tướng: Sẽ giảm 2% giá bán lẻ điện

This article summarises publicly available reports and is not legal, tax or investment advice. Check with the relevant authorities or a qualified adviser before making important decisions.