Vietnam Declares Fuel Crisis Alert Following Middle East Conflict, Takes Action
Jakarta — To prevent disruption to fuel supply and price increases due to conflict in the Middle East, Vietnam is considering a plan to eliminate fuel import tariffs. This was announced by the government on Monday, 9 March 2026.
The conflict between the United States and Israel with Iran has disrupted oil supply and driven prices to their highest levels since 2022. As of 09.20 WIB according to CNBC Indonesia records, Brent crude was recorded at US$113.68 per barrel, whilst West Texas Intermediate (WTI) stood at US$113.25 per barrel.
The Ministry of Finance stated that they have drafted a decree that will cut import tax tariffs to zero on several petroleum products. This is to help stabilise the domestic market and ensure national energy security.
“If the conflict continues and the blockade of the Strait of Hormuz persists, alternative supplies in the international market will become scarce and risk pushing prices higher,” said the Ministry of Finance in a statement, referring to the waterway that carries more than 20% of global oil, citing AFP.
In detail, based on the new decree, the 10% tariff for unleaded petrol and 7% tariff for diesel, aviation fuel and kerosene will be eliminated. The tariff decree will remain in effect until the end of April.
In Vietnam, since the conflict began over a week ago with US and Israeli attacks on Iran, fuel prices have surged sharply. Petrol prices have risen 21% to 27,040 Vietnamese dong (Rp 17,445) per litre, the highest since July 2022, whilst diesel prices have climbed more than 50%.
The government media, as reported on the same publication, stated that dozens of small petrol stations have closed temporarily or reduced operating hours due to dwindling supplies. Consumers are facing difficulties, with some expressing despair about what will happen if the Middle East conflict becomes prolonged.
“The price is very high. My salary is still the same, but the price of fuel keeps rising significantly,” said Le Quang, 25, a teacher living in Ho Chi Minh City.
“I think I will have to walk to work.”