Vietnam reviews power price reduction and zero gasoline excise tax
A lower electricity rate is targeted for November 1, while a proposal to remove gasoline excise tax must be submitted before that date.
Vietnam is considering cheaper electricity and the removal of gasoline excise tax following instructions from Deputy Prime Minister Nguyen Van Thang. The electricity reduction is being prepared with November 1 as the intended start date, but neither measure has been approved.
Thang told Vietnam Electricity Group (EVN) to scrutinise spending, maximise savings and draw up a lower average retail tariff. The Ministry of Industry and Trade will review EVN’s proposal. The existing average charge, effective since May 10, 2025, is ₫2,204 per kilowatt-hour before value-added tax.
Separately, the Ministry of Finance must work with relevant agencies to examine whether a zero special consumption tax rate could apply to every gasoline type. Its assessment must cover legality, feasibility and potential effects, with submission to the competent authorities required before November 1.
The special consumption tax law effective from July 1, 2026 sets rates of 10 per cent for conventional gasoline, eight per cent for E5 and seven per cent for E10. A previous temporary reduction brought gasoline excise tax to zero between late March and June 2026 to help stabilise the fuel market.
Environmental protection tax remains zero per litre for gasoline and oil products. Those products also remain exempt from requirements to declare and pay value-added tax until the end of 2026.
