Vietnam secures 4 mln barrels of oil to stabilize supply: Prime Minister

Vietnam has mobilized about four million barrels of oil from partners to ensure short-term supply and help stabilize market sentiment and public life amid global energy volatility, said Prime Minister Pham Minh Chinh.

The remark was made during a Monday meeting co-chaired by National Assembly Chairman Tran Thanh Man and PM Chinh on the content of the upcoming parliament session.

Man noted that global and domestic conditions remain challenging, particularly with regard to energy markets and rising fuel prices. He said the prime minister has been working with leaders of several countries to explore ways to share energy supplies and ensure stability for Vietnam.

PM Chinh added that the Government is holding continuous meetings and issuing directives to respond to the situation. "Vietnam has already secured about four million barrels of oil from partners to ensure near-term supply," he said.

The Government on Monday decided to reduce preferential import taxes on many gasoline products and raw materials for gasoline production to 0% to help businesses proactively secure supplies, respond to fluctuations in the global energy market, and contribute to stabilizing domestic supply.

According to Decree 72, the preferential import tax rate for unleaded motor gasoline has been reduced from 10% to 0%. This policy applies to items under HS code 2710.12, including unblended gasoline and gasoline blended with ethanol.

Gasoline blending materials such as naphtha and reformate (HS code 2710.12.80) also have their import tax reduced to 0%.

For other fuel products, the rates have been significantly adjusted. Specifically, diesel fuel, fuel oil, aviation fuel, and kerosene have had their import tax cut from 7% to 0%.

Several petrochemical raw materials also have their tax rates adjusted. Specifically, xylene, condensate, and p-xylene see their taxes drop from 3% to 0%. For other cyclic hydrocarbons, the tallies went down from 2% to 0%.

Decree 72 is effective from March 9 to April 30th. After this period, the preferential import tax rates for gasoline products and raw materials for gasoline production will revert to the application of Decree 26/2023.

However, in the event that the gasoline market continues to experience significant fluctuations and urgent measures are needed to ensure socio-economic stability, the Ministry of Industry and Trade may propose extending the policy's application period, submitting it to the Ministry of Finance for compilation and presentation to the Government for decision making.