Vietnam Fuel Prices: New Regulations & E10 Biofuel Rollout in 2026

Vietnam is poised for significant changes in its petroleum market, with new regulations set to empower businesses and streamline operations. Announced on January 29th, these revisions to petroleum business implementation decrees, initially drafted three years ago, are expected to be officially enacted in February, according to officials at the Ministry of Industry and Trade.

Shifting Control to the Market

The core of the changes centers on pricing. The latest draft allows businesses – including those operating gas stations, franchises, and multiple supply sources – to independently determine retail gasoline and diesel prices based on market mechanisms. Nguyen Anh Tuan, Head of the Petroleum and Gas Department, affirmed that retail prices will be determined by major distributors, preventing retailers from exceeding those prices.

Did You Know? The current draft of the decree has been awaiting government approval for three years, since its initial revision.

Biofuel Integration and Environmental Commitments

Alongside market liberalization, Vietnam is moving forward with its commitment to biofuels. E10 biofuel will be rolled out nationwide starting June 1, 2026, fulfilling pledges made at COP 26. Currently, PetroVietnam (Petrolimex) and PV Oil are already selling biofuel in major cities like Hai Phong, Hanoi, and Ho Chi Minh City, with no reported quality issues or incidents.

Streamlining Regulations and Ensuring Supply

The revised decree aims to simplify business procedures and administrative processes, facilitating smoother operations for petroleum companies. It also prioritizes maintaining adequate petroleum reserves and ensuring supply, particularly to remote, mountainous, and island regions. According to Nguyen Sinh Nhat Tan, Deputy Minister of Industry and Trade, the government has agreed to grant businesses the authority to manage prices while respecting market fluctuations.

Expert Insight: The shift towards market-driven pricing represents a significant move away from direct government control, potentially increasing competition and responsiveness to international market signals. However, the continued emphasis on regional supply and a price stabilization fund suggests a desire to mitigate potential disruptions and ensure equitable access to fuel across the country.

A fuel price stabilization fund exists, held in a national account but separate from the national budget. The Ministry of Industry and Trade will collaborate with other agencies to develop a plan for utilizing this fund, based on established pricing regulations. Any use of the fund will require a specific, approved plan submitted by businesses, not discretionary spending.

Regarding price adjustments, the current cycle is seven days, but this could be adjusted in the future to align with market conditions. The Deputy Minister emphasized that the goal is to manage prices in a way that allows businesses to operate normally while respecting market dynamics, with prices fluctuating in response to international oil price changes.

Looking Ahead

The Prime Minister is expected to approve the fuel price stabilization plan, outlining criteria, conditions, and ratios for fund usage. In preparation for the E10 rollout, the Ministry will inspect manufacturing and blending facilities in March and April, ensuring the necessary infrastructure is in place. The continued supply of E5RON92 biofuel will also be maintained to ensure compatibility with existing motorcycle models.

Frequently Asked Questions

What is the primary change coming with the new decree?

The primary change is that businesses will be able to independently determine retail gasoline and diesel prices based on market mechanisms, rather than having prices dictated by the government.

When will E10 biofuel be available nationwide?

E10 biofuel is scheduled to be rolled out nationwide starting June 1, 2026.

How will the fuel price stabilization fund be used?

The fund will be used according to a plan developed in collaboration with other agencies, based on established pricing regulations, and will require specific, approved plans submitted by businesses for any expenditure.

How might these changes impact fuel accessibility for those in more remote areas of Vietnam?