Vietnam moves to scrap fuel tariffs as Middle East conflict disrupts supplies

Hanoi, March 9 – Vietnam plans to remove import tariffs on fuels until the end of April to ensure adequate supplies after disruptions linked to the Middle East conflict pushed domestic fuel prices higher, the government said in a statement issued late on Sunday.

The measure is being prepared through a resolution by the Vietnam Ministry of Finance and aims to ease pressure on the domestic petroleum market as global energy flows are affected by the war involving Iran.

The government said import tariffs on fuels currently range up to 20%, though many imports from countries with free-trade agreements are already exempt from duties.Officials said the temporary suspension would allow companies to secure fuel supplies more easily during the period of market disruption.

“This tariff removal solution is considered necessary to support businesses in proactively securing their supply sources, contributing to stabilizing the domestic petroleum market and ensuring energy security,” the government said in the statement.

Domestic fuel prices in Vietnam have already risen between 21% and 32% since the U.S.-Israeli war with Iran began, reflecting volatility in global energy markets and tighter supply conditions.

Authorities said the tariff suspension, expected to remain in place through April, would reduce state revenue by about 1.02 trillion dong, equivalent to roughly $39 million.

The government framed the policy as a short-term intervention designed to stabilize energy supplies and limit the economic impact of higher fuel costs during the period of geopolitical uncertainty.