The MFN import tariff is a standard rate applied for trade between World Trade Organization (WTO) members unless a separate trade agreement exists.

An employee pumps gasoline into a motorbike at a fuel station in Hanoi on March 10, 2022.

But the cut is unlikely to reduce gasoline prices since Vietnam imported over 90% of its fuel from ASEAN member countries and South Korea under free trade agreements (FTAs) at 8% tariff.

But it will reduce Vietnam’s dependence on those sources and help diversify its supply.

Taxes account for 19.4-22% of gasoline prices in Vietnam, lower than in many other countries.

After four downward adjustments in recent days a liter of RON 95 gasoline now costs VND25,600 ($1.09), the lowest since late-February.

Lawmakers approve environmental tax cut on gasoline

The Standing Committee of the National Assembly Wednesday approved a government proposal to cut environmental tax on gasoline by half as prices surge.

Gasoline prices jump another 2.5 percent

Vietnam gasoline prices set yet another new record Monday after authorities adjusted them upward for the sixth consecutive time.

How Vietnam gasoline prices compare with that of other countries

Gasoline prices have doubled in Vietnam in less than two years to an all-time high, and account for a higher ratio of income than in several neighboring countries.

Gas price fluctuations over the last 13 years

Gas prices in Vietnam have more than doubled since 2009 and exceeded their previous peak of 2014 as global rates increase over supply shortages.

Gasoline prices surge 10 pct

Vietnam gasoline prices skyrocketed by 10 percent to another new record Friday, after authorities adjusted them upward for the seventh time in three months.

Source: VnExpress