Domestic petrol prices fell sharply on lower global oil prices

Domestic petrol prices fell sharply on lower global oil prices

The new prices took effect at 3pm on November 5, bringing E5 RON 92 to a maximum of VNĐ20,898 per litre and E10 RON 95-III to VNĐ21,156 per litre.

At a petrol station of Petrolimex in Hà Nội. Retail petrol prices were cut sharply from 3 pm on November 5. — VNA/VNS Photo Trần Việt

Retail petrol prices in Việt Nam fell sharply Thursday, with E5 RON 92 cut by VNĐ2,305 (US$0.09) per litre and E10 RON 95-III by VNĐ2,075, following a further adjustment by the Ministry of Industry and Trade and the Ministry of Finance.

The new prices took effect at 3pm on November 5, bringing E5 RON 92 to a maximum of VNĐ20,898 per litre and E10 RON 95-III to VNĐ21,156 per litre.

Diesel prices also edged down by VNĐ180 to VNĐ28,696 per litre, while mazut fell by VNĐ1,969 to VNĐ22,005 per kg.

This is the third consecutive reduction in domestic petrol prices, while diesel has declined for two consecutive adjustments.

In this adjustment, the petrol price stabilisation fund is used at VNĐ700 per litre of petrol.

The fund had a balance of more than VNĐ196.3 billion as of June 30, up over VNĐ1.22 billion from the end of the previous quarter. During the second quarter, contributions to the fund totalled nearly VNĐ1.9 trillion, while spending amounted to over VNĐ873 billion.

On November 3, domestic petrol prices were cut VNĐ1,020 per litre for E5 RON92 and VNĐ928 for E10 RON 95-III after the base prices fell by more than 10 per cent from the previous adjustment. Diesel declined by VNĐ1,370 per litre, while mazut rose by VNĐ378 per kg.

On the global market, oil prices continued to fall on Thursday for a fourth consecutive session amid expectations that the United States could pursue diplomatic efforts to end its conflict with Iran, easing concerns over potential disruptions to Middle Eastern oil supplies.

Brent crude fell 0.85 per cent to $93.82 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.36 per cent to $86.92, according to Reuters. 

Oil shipments through the Strait of Hormuz, a strategic shipping route for Gulf oil supplies, have recovered to near pre-conflict levels, although transportation costs remain elevated.

JPMorgan estimated that the global oil market moved into a supply surplus of around 1.1 million barrels per day in September, widening to 1.4 million barrels per day in October.

However, the market outlook remains uncertain, with commercial oil inventories in major consuming countries are also approaching their lowest levels in 15 years.

In Việt Nam, the Vietnamese Government has introduced measures to ease fuel costs through tax reductions. Under Resolution No. 45/2026/NQ-CP, the special consumption tax rate on petrol has been reduced to zero per cent from November 1, 2026, through March 31, 2027.

Fuel-related tax and fee relief measures are estimated to total VNĐ64 trillion from the beginning of this year, with around VNĐ4 trillion expected to be used to reduce the special consumption tax on petrol to zero per cent during the final two months of the year. 

The petrol price cuts are also expected to ease inflationary pressure as Việt Nam is striving to achieve double-digit growth for the full year. The country’s CPI rose 4.57 per cent in January – October, compared with the target of 4.5 per cent for the full year. 

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