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Conflict in Iran Pushes Vietnam Gas Prices Higher by 7%

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Photo courtesy of VN Express

Vietnam has raised gasoline prices, with RON95 fuel increasing by 7.69% to VND29,120 ($1.11) per liter due to rising global energy prices. Biofuel E5 RON92 also saw a 5.35% hike, while diesel went up by 1.59%. In response, the government has tapped into its stabilization fund, offering subsidies of VND4,000 per liter for RON95 and VND5,000 for diesel, marking the first fund usage in three years.

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This price increase is attributed to geopolitical tensions impacting the global supply chain, particularly the conflict involving the U.S., Israel, and Iran, which has disrupted transportation in the Strait of Hormuz and led to reduced production by Gulf nations. Additionally, global stockpiling of fuel has put upward pressure on prices, with RON95 reaching $147.5 per barrel—up 27%, while diesel rose by 20%.

Domestic pricing adjustments, usually done on Thursdays, occurred early this week due to the global price surge. Despite a brief decline in prices following a statement by U.S. President Donald Trump predicting an end to the Middle East conflict, domestic prices remain high pending the next adjustment. Vietnamese officials have sourced four million barrels of oil to secure a 30–45 day supply, aided by expected new supplies.

Looking forward, Vietnam's government is implementing tax and fee reductions to help manage retail prices. Import tariffs on gasoline have been set to zero for certain imports. Additionally, the Ministry of Finance is advocating for the removal of the environmental protection tax on fuel by March 12, which is currently VND1,000-2,000 per liter, aiming to alleviate pricing pressures further, reported VN Express.

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image.png  Adapted by ASEAN Now · VN Express · 11 Mar 2026

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