With inflation averaging 4.52% in the first nine months of 2026, Vietnam is considering electricity price reductions and eliminating gasoline excise taxes starting Nov. 1. Deputy Prime Minister Nguyen Van Thang ordered the proposals reviewed on Oct. 27, seeking relief for households and businesses through March 31, 2027.
State-owned Vietnam Electricity (EVN) must review operating costs, identify savings, and submit a retail electricity price reduction plan to the Ministry of Industry and Trade. The ministry will assess whether lower rates can take effect under existing regulations.
Meanwhile, the Finance Ministry is reviewing a proposal to reduce gasoline’s special consumption tax to zero. Current rates stand at 10% for mineral gasoline, 8% for E5, and 7% for E10, with other major petroleum taxes already temporarily suspended.
A Vietnamese report estimates that eliminating gasoline taxes could lower pump prices by 5,000 to 6,000 dong per liter. At those rates, motorists consuming 50 liters monthly could save 250,000 to 300,000 dong, depending on the final policy and fuel prices.
The proposed electricity reduction follows EVN’s improving finances, with estimated profits of 12.215 trillion dong during the first eight months of 2026. However, the utility must balance potential rate cuts against debt repayments, maintenance, and its 123.56 trillion-dong investment program.
Similar calls for energy cost relief have emerged in the Philippines amid rising electricity and fuel prices. Meralco‘s residential rate reached ₱15.0615 per kilowatt-hour in October, increasing household electricity bills as higher fuel costs and tighter supply raised generation charges.
Senate President Win Gatchalian has urged the suspension of gasoline and diesel excise taxes to ease transportation costs and their impact on food prices. Philippine law already allows temporary fuel tax reductions under specified conditions, with the government suspending excise taxes on LPG and kerosene in September.
Vietnam’s proposals remain under review, with authorities yet to approve the gasoline tax suspension or announce the size of any electricity rate reduction.
