Government weighs extending 0% import tariffs on gasoline, oil, and production inputs until end-June 2026

The Government is considering extending the 0% import tariff applied to certain gasoline, diesel, and production inputs until June 30, 2026. A draft resolution to amend Decree No. 72/2026/ND-CP, together with an amended preferential import tariff schedule attached to Decree No. 26/2023/ND-CP, would keep the 0% rate in effect through June 30, 2026, after which import tariffs would revert to the baseline rules in the relevant decree.

Proposed extension and additional 0% items

Under the draft, the 0% tariff would continue to apply until 30 June 2026. The draft resolution also adds a 0% tariff for three production-feedstock items under HS codes 2710.19.20, 2710.19.89, and 2711.19.00.

Background: Decree No. 72/2026/ND-CP tariff cuts

Decree No. 72/2026/ND-CP previously lowered many gasoline and diesel-related items to a 0% import tariff. The changes included:

• Non-leaded automotive gasoline under HS 2710.12.21, 2710.12.22, 2710.12.24, and 2710.12.25, reduced from 10% to 0%.
• Feedstocks such as naphtha and reformate (HS 2710.12.80), reduced from 10% to 0%.
• Diesel fuels and related products (HS 2710.19.71, 2710.19.72, 2710.19.79), reduced from 7% to 0%.
• Aviation fuels (HS 2710.19.81, 2710.19.82), reduced from 7% to 0%.
• Other kerosene (HS 2710.19.83), reduced from 7% to 0%.
• Key petrochemical inputs including xylene (HS 2707.30.00), condensate (HS 2709.00.20), and p-xylen (HS 2902.43.00), reduced from 3% to 0%.
• MFN rates for hydrocarbon feedstocks (HS 2902.90.90), reduced from 2% to 0%.

Cause and development: supply pressure and import negotiations

The Government notes that the end date of the 0% policy could pressure supply. Firms have had to negotiate imports for April–June amid ongoing geopolitical tensions.

The Ministry of Industry and Trade (MoIT) said the 0% policy helped diversify import sources beyond Korea and ASEAN and supported domestic supply during global supply-chain disruptions linked to Middle East conflicts.

Data and market feedback

Industry players, however, warn of risks tied to volatile supply and higher import costs, alongside rising world oil prices. Even if conflicts ease, they note that Middle East energy infrastructure will require time to recover.

Firms also reported supply tightness in May–June, citing higher freight and import charges.

Impact and policy considerations

MoIT said that if the exemption ends, supply shortages could recur. It also noted that tariff-free imports under preferential trade agreements could increase.

MoIT therefore requested the Ministry of Finance (MoF) to propose extending the 0% tariff through end-June 2026. MoIT also asked that consideration be given to further reducing tariffs on certain feedstocks currently at 5% to 0% to help maintain stable production.

Budget estimates and related measures

The Finance Ministry estimates that applying tariff reductions for feedstocks would reduce the state budget by about 997 billion VND. The total budget impact under Decree 72/2026 and the draft resolution is about 2,021 billion VND.

On March 28, 2026, the Government advanced 8,000 billion VND to the Price Stabilization Fund for gasoline and oil.

Outlook

While the 0% tariff is intended to broaden import sources and secure domestic supply, the Government acknowledges ongoing risks from supply volatility and higher import costs. MoIT and MoF continue discussions on extending the policy and potential additional tariff reductions.