Cuts in the petrol excise tax and the average retail electricity price, effective from November 1, 2026, will reduce costs for households and businesses, support production and business activity, curb inflation and sustain economic growth in the remaining months of the year, experts said.
Lower costs and support for production
The consumer price index rose 4.52% in the first nine months of 2026, according to the National Statistics Office under the Ministry of Finance. That was above the year's inflation ceiling of 4.5%. Inflationary and moderating factors are expected to continue acting at the same time in the remaining months, creating challenges for economic management.
The Government's decision to cut the average retail electricity price by 2% and set the petrol excise tax at zero from November 1 is expected to ease cost pressure on consumer prices and support economic activity, particularly for businesses with high production costs.
Nguyen Tien Thoa, chairman of the Vietnam Valuation Association, said the electricity price cut, implemented by the Ministry of Industry and Trade and Vietnam Electricity, would help stabilise the macro-economy, control inflation, support production and reduce household expenses.
The measure is expected to lower the consumer price index directly and indirectly and reduce production costs in energy-intensive industries. Estimates indicate that costs could fall by about 0.12% in steel, 0.3% in cement and 0.2% in textiles, giving businesses more room to cut product prices.
Setting the petrol excise tax at zero is expected to reduce domestic petrol prices by about 1,500–1,700 VND per litre, lowering production costs and inflation pressure.
Assoc. Prof. and Dr Ngo Tri Long warned that failure to control energy prices in the final two months of the year could increase inflation pressure. He said petrol and electricity prices were among the factors that could be addressed through economic policy.
Lower energy prices would reduce living costs, strengthen purchasing power and support macroeconomic stability and growth, he said.
Support for economic growth
Lower energy prices will benefit businesses and consumers by reducing production costs and easing price pressure on goods and services. The 2% electricity price cut will also reduce pressure on household budgets.
For businesses, cheaper petrol and electricity will lower input costs, improve competitiveness and make production easier, particularly amid deeper economic integration and stronger competition.
Assoc. Prof. and Dr Nguyen Thuong Lang of the National Economics University said the immediate result would be lower overall economic costs because electricity and petrol are essential inputs for many industries. This would help businesses improve operational efficiency.
Lower energy expenses could also reduce product prices, strengthen competitiveness and improve cash flow. Businesses with strong orders and expansion plans could use the savings to buy machinery and equipment or recruit more workers, he said.
For consumers, lower electricity, petrol and transport costs will increase real disposable income. Households will be able to spend more on other goods and services, supporting market demand.
Lang stressed that lower energy prices should be part of a broader package of economic measures. Combined with faster public investment disbursement, efforts to encourage private investment and sustained trade growth, they could give the economy fresh momentum.
Sources: VietnamPlus / Vietnam News Agency
