The Ministry of Finance has proposed extending the application period of Decree No. 72/2026 on reducing import tariffs on petroleum products to 0% through June 30, 2026.

The ministry has submitted to the Ministry of Justice a dossier for appraisal of a draft Government resolution on extending the validity of Decree No. 72/2026/ND-CP dated March 9, 2026, which amends the most-favored-nation (MFN) import tariff rates on a number of petroleum products and inputs for fuel production.

Decree 72 took effect from March 9 through April 30, stipulating that MFN import tariffs on various petroleum products were sharply reduced to 0%. Specifically, tariffs on unleaded gasoline (such as RON 95) and blending components were cut from 10% to 0%. Similarly, diesel oil and jet fuel were reduced from 7% to 0%. Many inputs used in petroleum production, such as naphtha, reformate and condensate, were also subject to a 0% tax rate.

In the new draft resolution, the Ministry of Finance proposes extending the application of Decree 72 by an additional two months, until June 30, 2026. At the same time, the drafting agency recommends expanding the list of products eligible for the 0% tax rate to include several other inputs under HS codes 2710.19.20 (partly refined crude oil), 2710.19.89 (other medium oils and preparations) and 2711.19.00 (other products).

Explaining the proposal, the Ministry of Finance stated that the tax reduction policy under Decree 72 has delivered clear results immediately after its implementation. Bringing tariffs down to 0% has not only directly supported enterprises in diversifying supply sources but also helped mitigate adverse impacts from global energy price fluctuations.

Amid ongoing conflict in the Middle East that continues to disrupt supply chains from traditional markets such as the Republic of Korea and ASEAN, the 0% tariff policy has enabled domestic enterprises to access alternative sources outside the region. As a result, petroleum supply for the domestic market has been secured, while improving the proactiveness of key distributors.

However, geopolitical tensions in the Middle East still pose significant risks, leaving global supply unstable and energy prices on an upward trend. Representatives of major enterprises such as Vietnam National Petroleum Group and Binh Son Refining and Petrochemical Company noted that even if the conflict ends, oil and gas infrastructure in the region would require at least five to seven weeks to restore production capacity to previous levels.

Meanwhile, if the 0% tariff policy expires on April 30, 2026, the market could face the risk of renewed supply shortages. In addition, import costs from sources enjoying preferential tariffs under agreements such as the ASEAN Trade in Goods Agreement (ATIGA) and the Vietnam - Republic of Korea Free Trade Agreement (VKFTA) remain high, adding further pressure on businesses.

On that basis, the Ministry of Finance considers it necessary to issue a resolution to extend Decree 72 in the current context. The policy is expected to continue helping reduce input costs, support enterprises in maintaining stable operations, and ensure adequate petroleum supply for the domestic market amid unpredictable fluctuations in the global energy market.