Special consumption taxes on gasoline to stay in place: MoF

Petrol use should remain conservative according to the ministry's proposal to the National Assembly, citing similar taxes worldwide. The ministry cited France's 0.6829 euro per litre, Germany's 0.3545 euro per litre and Italy's 0.4784 euro per litre. Similarly, the Republic of Korea, Australia, Singapore, China, Laos and Cambodia also maintains fuel taxes ranging from 15% to 16%.

Vietnam's special consumption tax es on gasoline remains at 10% (8% for E5 and 7% for E10). "Vietnam's current special consumption taxes can be considered as mid to low, especially in comparison to neighbouring countries such as Laos and Cambodia," said a ministry spokesperson.

Meanwhile, the ministry said it supported other measures to bring down fuel prices, including a 50% reduction of special consumption taxes on gasoline (E5 and E10 included), up to a 50% reduction of VAT on diesel, kerosene oil and Mazut oil.

However, how much of a reduction in special consumption taxes on fuel is a matter for the NA's Standing Committee to decide, according to the ministry. In March, fossil prices in the Southeast Asian country earlier hit a record high at over 30,000 VND (1.256 USD) per litre.

However, prices have since come down after several fees and tax cuts to around 20,000 VND per litre. However, economists predict that fuel prices will likely rise again, at least in the short term, after a recent OPEC decision to cut output by two million barrels daily.