Gasoline and diesel fall about 30%, retailers keep prices unchanged

Gasoline and diesel prices have fallen sharply—by about 30% from their peak—but many retailers have not reduced prices for other goods, according to market observations in Hanoi.

When fuel prices were rising, prices of items such as tofu blocks, sticky rice plates, bowls of pho and even cups of coffee increased as well. Now that fuel prices have dropped, shoppers say other goods prices remain largely unchanged.

Retailers “ignore” fuel price reductions

Ms. Phung Thi Minh Chau of Dinh Cong Ward, Hanoi, said that after visiting the market over the weekend, she saw only fuel prices fall while other goods prices stayed the same.

She reported that in March, the most common phrase she heard at the market was “prices rising.” Specific examples she cited include:

• Tofu increased by 5,000 VND per kg
• Sticky rice offerings rose by 5,000 VND per plate
• Pork and other dishes increased by 10,000–15,000 VND per kg
• Fried spring rolls rose from 6,000 to 6,500 VND
• Cups of coffee and fresh fruit juice sold on the sidewalk increased by 3,000–5,000 VND compared with February

Shopkeepers attributed the increases to higher costs during the fuel price surge, including the claim that even the cost of a plastic bag rose. However, Ms. Chau said that despite the recent sharp drop in fuel prices, many goods prices have not been adjusted downward.

She also noted that some fruit prices increased over the period she observed. For example, Satsuma oranges rose from 200,000 to 300,000 VND per 18 kg box, mandarins from 25,000 VND per kg to 55,000 VND per kg, and coconuts from 240,000 to nearly 400,000 VND per box of 30 fruits. Shopkeepers said fruit prices rise partly due to seasonality and partly due to higher shipping costs.

Fuel prices adjusted multiple times; goods lag behind

A report by the Domestic Market Operations Steering Committee under the Ministry of Industry and Trade said that from February 28 onward, armed conflicts involving the US, Israel and Iran contributed to sharp increases in global fuel and energy prices. This, in turn, affected fuel prices in Vietnam and influenced prices and supply-demand for agricultural inputs, produce and construction materials.

According to the General Statistics Office, Vietnam’s Consumer Price Index (CPI) in Q1 2026 rose 3.51% year-on-year. Among major groups, housing, electricity, fuel and building materials rose 5.69%; food and catering services rose 4.55%; and goods and services other than food and catering rose 3.68%.

In reality, from early March to April 9, domestic gasoline and diesel prices were adjusted 13 times in line with global price movements. At the April 3 adjustment, diesel reached a peak of 44,788 VND per liter. At the April 8–9 adjustments, diesel fell by 11,819 VND per liter (nearly 26.4%).

As of April 9, RON95 gasoline fell by 10,297 VND per liter (down 30.4%) from the peak of 33,840 VND per liter recorded on March 24.

Why retailers delay price cuts

Despite the 26–30% decline from the peak, Ms. Do Thi Ha, owner of an online kitchen in Dinh Cong, said price reductions for dishes must wait. She explained that her dish prices depend heavily on input costs. Recently, freight costs rose sharply, gas prices reached nearly 630,000 VND per cylinder, and packaging costs nearly doubled. Agricultural produce prices also increased.

To cover rising inputs, she said she adjusted prices upward by 5,000–10,000 VND per meal. Now that only fuel prices have dropped, she said gas prices remain high and have not yet been adjusted downward. She added that even when fuel falls, some input costs do not decline immediately because freight costs also need time to fall.

Economist Nguyen Hoang Dung said fuel accounts for about 5–10% of the direct cost of a bowl of pho, but spillover effects can influence 20–30% of total costs through transport and logistics. He noted that while retail prices should theoretically pass through lower fuel costs, in practice prices often rise quickly but fall slowly. Sellers may also be reluctant to adjust continuously because they worry fuel prices could rise again, and because price changes involve printing, notices and operating costs.

He also pointed out that fixed costs—such as rent, labor, electricity and water—often rise and can act as a “shield” that keeps prices high. More importantly, in a market economy, selling prices depend not only on costs but also on supply-demand and customers’ perceived value. If consumers still accept new prices, the incentive to lower them is weaker.

Economist Le Quoc Phuong added that goods prices may not adjust down as quickly as fuel because fuel prices have been volatile on a daily basis. He said some items also require registration or permission to adjust prices, such as freight charges. For food service, each price adjustment can significantly affect consumer psychology and behavior.

He further noted that price changes in the supply chain typically involve a lag—often 15 days to 1 month—depending on when firms purchase inputs. For example, if a business bought stock at the end of March when fuel prices were high, it may continue selling at higher prices until inventory is depleted.

Tâm An
VietnamNet