A cut in environmental protection tax rates on fuel, which came into effect across Vietnam on Friday thanks to a National Assembly (NA) Standing Committee resolution, has lowered gas prices in the country.

Accordingly, the environmental protection tax on petrol (except for ethanol), diesel oil, mazut, lubricating oil, and grease was halved from Friday through December 31.

That tax on kerosene was cut by 70 percent during the same period.

As a result, the tax currently stands at VND2,000 per liter for petrol (except for ethanol), VND300 for kerosene, and VND1,000 for diesel oil, mazut, lubricant, and grease. (US$1 = VND22,841)

Following the NA’s decision, the Ministry of Finance and the Ministry of Industry and Trade announced on Friday new fuel prices in line with the environment tax reduction.

The price of a liter of the E5RON92 gasoline dropped VND1,021 to VND27,309 while that of RON95-III shrank by VND1,039 to VND28,153. 

Meanwhile, the price of a liter of diesel oil, kerosene, and mazut followed the global uptrend despite the tax cut.

Diesel oil rose in price from VND23,638 per liter to VND25,080, while kerosene increased from VND22,248 per liter to VND23,764 per liter. Mazut rose up VND506 per liter to VND20,929.

Oil and gas prices in Vietnam climbed to an all-time high on March 11 after the Ministry of Finance and the Ministry of Industry and Trade adjusted the rates upward for the seventh consecutive period.

The prices dropped slightly following a scheduled adjustment on March 21.

Lowering the environmental protection tax on gasoline, oil, and grease is considered a suitable and necessary solution, according to industry experts.

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