Vietnam raises domestic fuel reserves to 26 days to bolster energy security, says minister

Industry and Trade Minister Le Manh Hung said the ministry has implemented five groups of solutions to ensure energy security, including raising domestic fuel reserves to 26 days. He made the remarks during a panel discussion on the socio-economic plan on April 10.

Energy crisis context and management objectives

The minister said the conflict in the Middle East has triggered the largest global energy crisis since the 1970s, and Vietnam has been significantly affected. Under current authority, the objective for energy management is to “ensure energy security,” based on three pillars: adequate supply, a disruption-free distribution system, and ensuring people’s access while minimizing macroeconomic impacts.

Response scenarios and current assessment

The Ministry of Industry and Trade has developed three response scenarios. The base scenario assumes the conflict ends within four weeks. In the second scenario, the conflict could end in “four weeks plus two,” while the third scenario assumes it lasts longer than four weeks. “So far, the basic situation is following the second scenario,” Hung said.

Measures implemented and reserve levels

With recent developments, the operator has implemented five coordinated measures to ensure domestic supply, extend circulating reserves as prescribed by Decree 95, and maintain a buffer if the conflict continues.

Thanks to these measures, domestic fuel reserves have risen from 15 to 26 days.

Refinery supply outlook and current stock coverage

At a government briefing last week, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the two domestic refineries, Dung Quat and Nghi Son, can supply enough feedstock to produce through the end of April. In March, major trading enterprises imported 3.2 million m3 of gasoline and diesel. Combined with current stockpiles of 2.6–2.8 million m3, domestic fuel supply can sustain production and consumption for the month.

Vietnam currently does not have a national fuel reserve stockpile; stocks are kept in the warehouses of leading fuel traders under contract, with standard fees. The current level is roughly 7–10 days of consumption.

The government has tasked the Ministry of Industry and Trade to work with foreign partners to pursue a strategic fuel reserve at Nghi Son (Thanh Hoa).

Product mix adjustments and ethanol rollout

Hung said the two domestic refineries maintain high capacity and are restructuring product mixes—raising energy products and reducing non-energy products. Ethanol plants in Vietnam have also resumed production to introduce E10 nationwide by the end of April, earlier than planned by more than a month.

“If we use E10 nationwide, we can achieve about 14% self-sufficiency in gasoline,” Hung stated.

Price impact and comparison with global levels

Hung said crisis-response measures have helped Vietnam keep fuel and diesel prices below the world average by about $1.3 per liter, roughly 35,000 dong. Currently, RON 95-III gasoline trades at about 23,000–24,000 dong per liter.

From late February to now, retail fuel prices have undergone 15 adjustment rounds. Gasoline RON 95-III is 23,540 dong per liter and diesel is 32,960 dong per liter. Earlier, these prices rose to nearly 34,000 dong and 45,000 dong per liter, respectively.

Demand, supply structure, and medium-term targets

Vietnam’s primary energy demand is about 119.6 million TOE (tons of oil equivalent). Domestic production meets about 66 million, while imports account for about 53.6 million—nearly 44%.

In the long term, the minister said energy strategy updates are needed to reduce the share of imported primary energy to around 30% by 2030.

“The approach taken so far is appropriate for the crisis stage,” Hung affirmed.

Calls for a national fuel reserve

During the discussions, some delegates urged early construction of a national fuel reserve, describing it as an “insurance for the economy.” Deputy Chairman Dang Ngoc Huy proposed that the Prime Minister implement breakthrough measures such as budgeting and policy to commence the national fuel system immediately.

He also suggested a concrete roadmap: reaching a 60-day reserve by 2028 and 90 days by 2030.

Prime Minister Le Minh Hung indicated in the government report to the National Assembly that a plan to build a national stockpile for essential goods, including fuel, exists, with a target fuel reserve system of at least 90 days.