Moves made to secure supply of fuel

Vietnam has moved swiftly to secure domestic fuel supply, deploy price stabilisation tools, and prepare for prolonged external shocks.

- By Hara Nguyen

At a meeting of the Government Standing Committee last week in Hanoi, Prime Minister Pham Minh Chinh reaffirmed that Vietnam will not allow fuel shortages under any circumstances, stressing the need to manage fuel prices in line with market principles under state oversight, while deploying flexible and effective stabilisation measures.

“If tensions in the Middle East persist, the government may consider allocating budget resources to support fuel price stabilisation,” the PM said. “Policymaking must prioritise production, business activity, and livelihoods, ensuring stability while minimising disruptions.”

Against the backdrop of conflict in the Middle East, Vietnam, which remains partly dependent on fuel imports, has stepped up its regulatory approach. Price adjustments are being made more frequently, while the price stabilisation fund has been actively utilised, alongside a broader mix of policy tools to cushion the impact of global energy volatility.

After being effectively frozen since 2023, the stabilisation fund has been reactivated. Within just two weeks, the Ministry of Finance and Ministry of Industry and Trade tapped into the fund five times, with total disbursements estimated at $60 million. According to disclosures by major distributors, Petrolimex and PV Oil had together spent nearly $25 million from the fund as of March 12.