The Government has passed a resolution enforcing Clause 8, Article 59 of the 2022 Petroleum Law, requiring oil contractors to prioritize the domestic market. Under the measure, contractors must sell crude oil or condensate that has not been earmarked for export, provided the supply aligns with the demand and processing capabilities of Vietnamese refineries. The move is aimed at ensuring stable input for local refining operations and reducing reliance on foreign sources.
The Government has authorized the Minister of Finance to instruct the Members’ Council of Vietnam National Industry–Energy Group (PVN), acting on behalf of the Goverment, to determine specific implementation measures in a flexible and efficient manner while ensuring compliance with petroleum regulations.
At the same time, PVN and its subsidiaries involved in crude oil processing and trading, including Binh Son Refining and Petrochemical Joint Stock Company and PetroVietnam Oil Corporation, are permitted to conduct the buying, selling, and import–export of crude oil and petroleum production feedstocks.
The Government has also authorized the Ministry of Industry and Trade and the Ministry of Finance to oversee state management and represent state ownership of capital in directing PVN and related groups during crisis conditions. Both ministries will remain responsible for regulatory management.
The Ministry of Industry and Trade has been tasked with carefully reviewing the fuel supply situation and proactively implementing measures to ensure adequate petroleum supply for domestic production, business activities, and consumption. The ministry must prevent any fuel shortages and promptly report or propose solutions for issues beyond its authority.
In addition, the Ministry of Industry and Trade, in coordination with the Ministry of Finance, will direct Vietnam Electricity (EVN), PVN, and relevant units to prioritize the maximum use of domestically produced gas for electricity generation. A mechanism will also be established to allow domestic gas to replace imported liquefied natural gas (LNG) where possible, in compliance with electricity regulations and related laws. The measure aims to reduce the risk of fuel shortages for power generation, increase condensate and crude oil output associated with gas production, and strengthen national energy security.
Fuel price adjustments triggered by 7 percent base price increase
The Government also approved a mechanism allowing immediate adjustments to retail fuel prices if the base price of commonly consumed petroleum products rises by 7 percent or more compared with the previous pricing period.
Once such a threshold is reached, the Ministry of Industry and Trade, which had to work with the Ministry of Finance, will manage price adjustments and announce the new base fuel price accordingly.
If the base price increases by less than 7 percent, fuel price management will continue under the existing regulations specified in Decree No. 80/2023/ND-CP, with adjustments made on the regular weekly schedule each Thursday.
Based on data on cost components forming the base fuel price, and written input from the Ministry of Finance submitted before noon on pricing days, the Ministry of Industry and Trade will announce both the base price and the retail selling price of petroleum products.
Import tariff adjustments for petroleum products
The Government has also directed the Ministry of Finance to urgently coordinate with the Ministry of Justice, the Ministry of Industry and Trade, and other relevant agencies to draft a decree amending the most-favored-nation import tariff rates for certain petroleum products.
The revised tariffs will apply to the preferential import tariff schedule issued under Decree No. 26/2023/ND-CP on export and import tariff schedules, goods classification, and absolute, mixed, and out-of-quota import tax rates. The draft decree is to be submitted to the Government under expedited procedures on March 7.
In the event that domestic refineries fail to deliver petroleum volumes as stipulated in contracts with fuel distributors, or if imports become difficult and lead to supply shortages, the Government has instructed the Ministry of Industry and Trade to assess domestic supply–demand conditions. The ministry may then direct fuel wholesalers to use their commercial petroleum reserves or release national petroleum reserves in accordance with the law on state reserves to offset shortages in the domestic market.
The Ministry of Industry and Trade will be responsible for the accuracy of its data and policy proposals, while strengthening oversight and inspections to prevent abuse or profiteering from policy measures.
The Government also instructed the Ministry of Industry and Trade and the Ministry of Science and Technology to urgently review standards and technical regulations related to biofuels. The ministries will coordinate with relevant agencies to prepare conditions for implementing the roadmap for transitioning to biofuels, thereby reducing the consumption of conventional gasoline.
Finally, ministries, agencies, and local authorities have been directed to promote energy-efficient production and consumption practices while ensuring the stable supply of electricity and petroleum under all circumstances.
