Import duties on several petroleum products down to zero

Import duties on several petroleum products down to zero

The policy comes amid rising tensions in the Middle East, particularly the conflict involving the United States, Israel and Iran, which has begun to affect global energy markets.

People queuing up to refuel at a gas station in Hà Nội. VNA/VNS Photo

The Government has moved to ease pressure on domestic fuel supplies by reducing preferential import duties on key petroleum products and raw materials used in fuel production to zero per cent.

The temporary adjustment, outlined in Decree No. 72/2026/NĐ-CP dated March 9, aims to help enterprises secure alternative import sources amid rising global uncertainty and disruptions in oil shipping.

The decree amends the preferential import tariff rates for a range of fuel products listed in the tariff schedule issued alongside Decree No. 26/2023/NĐ-CP on export and import tariffs, as well as lists of goods subject to absolute tax, mixed tax and out-of-quota import duties.

Shipping through the Strait of Hormuz, a crucial route for crude oil exports from the Middle East, has faced increasing disruption, raising concerns for Asian markets that rely heavily on the region’s crude oil supplies. The Government’s temporary tariff cuts are intended to mitigate these risks and maintain stable domestic fuel availability.

Under the decree, preferential import duties on unleaded motor gasoline have been slashed from 10 per cent to zero per cent for gasoline products under HS codes 2710.12.21, 2710.12.22, 2710.12.24 and 2710.12.25.

Import duties on gasoline blending components, including naphtha and reformate (HS code 2710.12.80), have also been reduced from 10 per cent to zero per cent.

Diesel fuel, fuel oil, aviation turbine fuel and kerosene have seen preferential import duties fall from 7 per cent to zero per cent.

Several petrochemical feedstocks have been included in the measure. Import duties on xylene, condensate and p-xylene have been cut from 3 per cent to zero per cent, while tariffs on other cyclic hydrocarbons have been lowered from 2 per cent to zero per cent.

The decree takes effect from March 9 and will remain valid until April 30. Once the period expires, tariff rates for the affected products will revert to the levels stipulated under Decree No. 26/2023/NĐ-CP, unless the Government decides to extend the policy.

If urgent measures are needed to support socio-economic development or stabilise the domestic petroleum market, the Ministry of Industry and Trade may propose an extension. Any such proposal would be consolidated by the Ministry of Finance and submitted to the Government for consideration.

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