Under current regulations, the fund is intended to mitigate sharp price fluctuations in the domestic petroleum market. The legal framework governing its use primarily includes Government Decree 83/2014/ND-CP on petroleum trading, later amended by Decree 95/2021/ND-CP, along with Circular 103/2021/TT-BTC issued by the Ministry of Finance. Decisions on deploying the fund are led by the Ministry of Industry and Trade in coordination with the Ministry of Finance.
According to Article 5 of Circular 103/2021/TT-BTC, the use of the stabilization fund depends on the extent of changes in the base fuel price compared with the previous price adjustment period. If the base price rises by less than 7 percent, the general principle is not to draw on the fund unless the increase is likely to significantly affect socio-economic conditions or people’s livelihoods.
If the base price increases between 7 percent and 10 percent, the Ministry of Industry and Trade may decide on the level of fund disbursement, in consultation with the Ministry of Finance, to soften the rise in domestic retail prices. In cases where the base price increases by more than 10 percent, the two ministries must report to the Prime Minister for consideration and guidance on whether to use the stabilization fund or apply other price-control measures.
Despite these provisions, the fund has not been tapped during the two most recent fuel price adjustments on March 5 and March 7, even though retail fuel prices rose sharply in both instances.
According to data released by the Ministry of Industry and Trade, since late 2023, the joint management body of the Ministry of Industry and Trade and the Ministry of Finance has neither authorized withdrawals from the stabilization fund nor required fuel traders to contribute additional allocations to the fund during price review periods.
Meanwhile, official figures published by the Ministry of Industry and Trade on January 6, 2026, showed that as of September 30, 2025, the total balance of the Fuel Price Stabilization Fund held by major petroleum traders neared VND5.62 trillion. Interest generated from the positive fund balance amounted to nearly VND3 billion.
Ms. Nguyen Thuy Hien, Deputy Director of the Department of Domestic Market Management and Development under the Ministry of Industry and Trade, said that during the price adjustment on March 5, the factors forming the base fuel price increased by more than 10 percent compared with the previous review period. According to the authorities’ assessment, such a sharp increase could affect production, business activities, and the daily lives of citizens. The ministry therefore reported the developments and potential policy options to the Prime Minister.
However, Ms. Nguyen Thuy Hien noted that the implementation of price stabilization measures, including the use of the Fuel Price Stabilization Fund, must comply with the provisions of the Law on Prices. The current fuel price surge has only recently emerged, and completing a comprehensive impact assessment within the first adjustment cycle is constrained by both time and legal procedures.
Officials from the Ministry of Industry and Trade added that, in the current context, fuel price management does not rely solely on the stabilization fund. Authorities can also deploy other tools, such as adjusting taxes and fees or flexibly modifying the timing of price reviews.
Speaking at the ministry’s regular press conference in January 2026, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan emphasized that any use of the stabilization fund must strictly comply with the Law on Prices and receive government approval. Clear criteria must also be met regarding the conditions, magnitude, and rate of fuel price fluctuations before a decision is made to draw on the fund.
According to Mr. Nguyen Sinh Nhat Tan, the stabilization fund is not the only mechanism available for regulating fuel prices. In certain circumstances, the government may consider other policy instruments, including State budget measures, to maintain macroeconomic stability and ensure social welfare.
Economic experts warn that fuel price volatility could have wide-ranging repercussions for the broader economy. Mr. Nguyen Tien Thoa, Chairman of the Vietnam Valuation Association, noted that petroleum products serve as essential inputs for numerous industries and services, albeit to varying degrees.
In the transport and logistics sectors, for example, fuel costs typically account for around 35–40 percent of total operating expenses. In fisheries, fuel expenses for each offshore fishing trip can represent roughly 50–60 percent of total costs, while in coal mining, they account for about 45 percent.
Because fuel is closely tied to transportation and machinery operations, fluctuations in petroleum prices often generate ripple effects across multiple sectors, pushing up logistics costs and the prices of goods and services.
The recent fuel price increases have been substantial and could affect many areas of the economy, particularly industries with heavy fuel consumption. Against this backdrop, Mr. Nguyen Tien Thoa said it is necessary to implement prompt measures to contain the upward pressure on fuel prices and keep them at levels that remain manageable for businesses and the broader economy.
He added that if the Fuel Price Stabilization Fund still has sufficient reserves, authorities should consider using it to ease short-term price pressures and mitigate the immediate impact of rising fuel costs.
