A worker holds a fuel nozzle at a station in Ho Chi Minh City. Photo by VnExpress/Huu Khoa
The government has issued a decree slashing the preferential import tariffs on several fuel products and raw materials used in fuel production to stabilize local supply.
The decree, issued and effective on Monday, slashed preferential import duties on unleaded petrol from 10% to zero. Tariffs on petrol blending components such as naphtha and reformate were also reduced to 0%.
Duties on diesel fuel, fuel oil, aviation fuel and kerosene were cut from 7% to 0%.
Additionally, tax rates on certain raw petrochemical materials such as xylene, condensate and p-xylene were lowered from 3% to 0%, while those on other cyclic hydrocarbons were reduced from 2% to 0%.
The decree is effective until April 30, after which the 0% tariffs will revert to their previous levels unless an extension is approved.
It comes as rising tensions in the Middle East, particularly the conflict involving the U.S., Israel and Iran, have substantially affected the global energy market, especially shipping activity through the Strait of Hormuz, a strategic route for transporting crude oil from the region.
Asia has been directly impacted by the disruptions as it heavily depends on crude oil supply from the Middle East.
