After the excise tax was cut to 0% on November 1, Vietnam's petrol price fell to 24,150 dong per litre. In Laos, petrol cost 48,276 dong per litre, putting the difference at about 24,120 dong.
According to Vietnam's Ministry of Industry and Trade, at the price adjustment on the evening of October 31, fuel prices in Vietnam remained considerably lower than in neighbouring countries. Petrol in Laos cost almost twice as much as in Vietnam.
Petrol prices across the region
Laos had the highest price among the countries compared, at 48,276 dong per litre. Petrol cost 32,550 dong per litre in Thailand and 32,010 dong in Cambodia. Both countries were using government subsidy programmes. China's petrol price stood at 36,125 dong per litre under a government price-control mechanism. In Vietnam, the price fell to 24,150 dong per litre after the excise tax was reduced to 0% on November 1.
Petrol in Laos was about 24,120 dong per litre more expensive than Vietnam's maximum price. Compared with China, Thailand and Cambodia, Vietnam's petrol was about 11,975, 8,400 and 7,860 dong cheaper per litre, respectively. The petrol prices reported by Vietnam's Ministry of Industry and Trade as of November 1 were: Laos, 48,276 dong per litre; Thailand, 32,550; China, 36,125; Cambodia, 32,010; and Vietnam, 24,150. Thailand and Cambodia subsidised fuel, China controlled prices, and Vietnam's price fell after the excise tax reduction.
A wider comparison of Southeast Asian markets also showed substantial price differences linked to each country's tax and subsidy policies. In Malaysia, non-subsidised RON 95 petrol was cut to 4.42 ringgit per litre, about 28,000 dong, from October 29 to November 4. Eligible residents could still buy petrol at 1.99 ringgit per litre. In Singapore, RON 95 petrol was priced at about S$3.56–3.63 per litre on October 31, equivalent to 68,700–70,000 dong, based on prices collected by AsiaOne from local companies. In Metro Manila, the average RON 95 price was about 82.40 pesos per litre during the week of October 27 to November 2, or roughly 36,000 dong.
Diesel prices
As of October 29, Laos was also the most expensive country in the comparison for diesel, at 40,848 dong per litre. Diesel cost 35,179 dong per litre in Cambodia and 33,333 dong in Thailand, where the government continued to subsidise fuel. China kept diesel at 31,924 dong per litre through its government price-control mechanism. In Vietnam, diesel cost no more than 30,246 dong per litre, below the prices in Laos, Cambodia, Thailand and China.
In Singapore, retail diesel cost S$4–4.07 per litre on November 1, equivalent to about 81,000–82,500 dong, at SPC, Shell and Caltex stations before discounts. In Metro Manila, the average diesel price was 95.46 pesos per litre during the week of October 27 to November 2, or about 38,600 dong.
Vietnam's lower fuel prices compared with many countries in the region reflect government policies on price regulation, taxes and fees. From November 1, the excise tax on petrol was reduced to 0%, helping bring down domestic retail prices. The environmental protection tax on petrol and diesel had previously also been reduced to 0 dong per litre. That policy, along with the value-added tax treatment for fuel, remained in place until December 31. Fuel is not subject to VAT declaration and payment, but input VAT can still be credited.
Sources: Dân Trí
