The Government has officially reduced the special consumption tax rate on all types of petrol to zero per cent, effective from November 1, 2026, to March 31, 2027.
Deputy Prime Minister Nguyen Van Thang has signed a Resolution on the tax reduction in accordance with the National Assembly Resolution on environmental protection tax, value-added tax and special consumption tax on petrol, oil and aviation fuel.
The new resolution stipulates that, if the effective period needs to be adjusted to meet socio-economic development requirements, ensure energy security or stabilise the petrol and oil market, the Ministry of Industry and Trade may submit a proposal through the Ministry of Finance to the Government for consideration.
Under the Special Consumption Tax Law, which took effect on July 1, 2026, the tax rates were set at 10 per cent for conventional petrol, 8 per cent for E5 biofuel and 7 per cent for E10 biofuel. This is not the first time the tax has been reduced to zero. The same measure was applied from late March to the end of June 2026 to help stabilise the market.
In a proposal submitted to the Ministry of Finance, the Ministry of Industry and Trade said special consumption tax accounts for approximately 6.69 per cent of the components making up the base price of petrol. Cutting the rate to zero could therefore reduce retail petrol prices by an equivalent amount, provided other pricing factors remain unchanged.
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