Vietnam Fuel Price Update July 2025: Global Oil Impact and Stabilization Fund Role

The July 17 fuel price adjustment brought welcome news for Vietnamese consumers, with E5RON92 gasoline dropping 178 VND to 19,481 VND per liter and RON95-III gasoline falling 165 VND to 19,925 VND per liter. Minh, a taxi driver in Ho Chi Minh City, shared: "Even though it's just a few hundred dong reduction, for someone like me who drives 200-300km daily, it adds up to significant savings. This helps ease my cost pressures and allows me to keep fares stable for customers." However, behind these numbers lies a complex story of global energy markets and domestic price management mechanisms that we'll explore together.

Current Global Crude Oil Market Landscape

The global crude oil market in July witnessed notable volatility. As of July 20, Brent crude was trading at $69.23 per barrel and WTI at $67.30 per barrel, both showing slight declines over the past week due to geopolitical concerns in Europe.

According to reports from the Ministry of Industry and Trade, the global gasoline and oil market during the adjustment period from July 10-16 was influenced by declining US crude oil inventories while refined product stocks increased, alongside OPEC+ forecasts of continued oil demand growth in Q3. This combination created mixed signals in the market, leading to price fluctuations across different product categories.

Notably, Brent crude has declined 10.02% over the past three months, from a peak of $82.03 per barrel on January 15 to a low of $62.82 on April 8. This decline partly explains why domestic gasoline prices could be adjusted downward in the recent period.

July Price Adjustment: Stabilization Fund Inactive and Its Implications

A significant development in the July 17 adjustment was that the Ministry of Industry and Trade and Ministry of Finance did not implement any withdrawals from or contributions to the Gasoline and Oil Price Stabilization Fund for all product categories. This means the price reductions enjoyed by consumers directly reflect global market movements without intervention from the support fund.

This represents an important signal that market mechanisms are operating more transparently, but it also means consumers will immediately feel any future price increases if global oil prices surge. Experts advise the public to prepare mentally for a more transparent gasoline market when the Fund no longer serves as a regular "buffer."

New Tax Policies and Cost Impact

A crucial factor affecting domestic gasoline prices from July was the reduction of value-added tax on gasoline from 10% to 8% under National Assembly Resolution No. 204/2025/QH15, effective from July 1, 2025, through 2026. This policy contributes significantly to reducing price pressure and supporting consumers amid ongoing economic challenges.

Additionally, price adjustments comply with Resolution No. 60/2024/UBTVQH15 on environmental protection tax rates for gasoline and oil, effective from January 1, 2025, through 2025, demonstrating policy coordination in government energy price management.