Vietnam has extended the suspension of environmental protection and special consumption taxes on fuels to stabilise the domestic market, as supply disruptions linked to the Iran war drive sharp increases in fuel prices and inflationary pressure.
Vietnam has extended the suspension of environmental protection and special consumption taxes on fuels until the end of June from 15 April to stabilise the domestic market amid ongoing supply disruptions linked to the Iran war, the parliamentary office said on Sunday,12 April 2026.
The National Assembly has passed a resolution maintaining the suspension, which has been in place since late March. The finance ministry said last month that the measure is expected to reduce state revenue by VND 7.2 trillion per month.
Fuel prices have risen sharply since the US-Israeli war on Iran began at the end of February, with gasoline prices increasing by 17% and diesel prices rising by 70%, according to Petrolimex data.
The increase in fuel costs has also pushed up transport expenses, contributing to a 4.65% year-on-year rise in Vietnam’s consumer prices in March and adding pressure on the government’s 4.5% inflation target for the year.
