The year 2023 marked a significant turning point in Vietnam's fuel pricing mechanism with the official issuance of Decree No. 80/2023/ND-CP (Decree 80). This legislation amended and supplemented key articles from Decree 95/2021/ND-CP and Decree 83/2014/ND-CP on petroleum trading. These reforms not only impacted retail fuel prices but also brought structural improvements to the domestic fuel market and business environment.
One of the most notable changes introduced by Decree 80 was the shortening of the fuel price adjustment cycle from 10 days to 7 days. Under the new rule, fuel prices are now adjusted every Thursday, ensuring a closer reflection of global oil price fluctuations. However, adjustments are flexibly rescheduled in special circumstances:
If Thursday falls on the 29th or 30th of the Lunar New Year, the price adjustment takes place on the preceding Wednesday.
If it coincides with the first, second, or third day of the Lunar New Year, the adjustment is moved to the fourth day.
If Thursday is a public holiday, the adjustment is either brought forward to the preceding Wednesday or postponed to the next working day after the holiday, depending on the specific situation.
This shift enhances the government's ability to react swiftly to international price movements, limiting market distortions and speculation that might arise from delayed pricing updates.
Decree 80 also introduced a revised base price formula for petroleum products that reflects both imported and domestically produced sources. The formula now calculates base prices by taking into account the proportion of each supply source:
Base Price = (Import Price × Import Proportion) + (Domestic Price × Domestic Proportion)
Previously, the cost structure often failed to include real-time and comprehensive expenses such as international freight, port delivery costs, domestic refinery expenses, and premiums from local production. This led to inaccurate pricing and significant financial losses for many fuel importers and distributors, discouraging them from maintaining stable supply chains.
To address this issue, Decree 80 also shortened the review period for disclosing relevant cost components from 6 months to 3 months. This more frequent review cycle allows businesses to align their operations with market realities and remain motivated to ensure adequate domestic fuel supply.
Vietnam’s fuel market has faced numerous challenges in recent years. Throughout 2022 and early 2023, fuel shortages occurred in several localities as retailers either closed temporarily or operated below capacity due to persistent losses. A key reason behind this disruption was the lack of timely and accurate cost inclusion in the pricing mechanism.
With Decree 80, the Vietnamese government responded promptly to the need for transparency and reform. By redefining how prices are built and revised, the policy seeks to create a level playing field for businesses while safeguarding consumer interests.
The new decree demonstrates a stronger regulatory commitment to support sustainable market operations and minimize the negative impacts of pricing delays or inaccuracies. Furthermore, it aligns with international practices and helps build investor confidence in Vietnam’s energy sector.
Since the implementation of Decree 80, Vietnam’s domestic fuel market has shown signs of stabilization. Retail prices now better reflect global trends, and distributors are more confident in sourcing and managing inventory levels.
Nevertheless, global influences continue to weigh heavily on local fuel prices. In January 2025, for instance, Brent and WTI crude prices dropped for several consecutive sessions due to concerns over the potential economic impact of new tariffs proposed by U.S. President Donald Trump.
Such developments underscore the importance of a dynamic and robust pricing system. Experts expect that Decree 80 will continue to serve as a critical policy tool throughout 2024 by promoting greater cost transparency, improved data integration, and faster response times to market volatility.
However, further steps are still needed to enhance the fuel pricing framework in Vietnam, including:
Strengthening cost audit and monitoring for fuel traders.
Improving national fuel reserves to hedge against supply disruptions.
Enhancing inter-agency coordination in forecasting, data sharing, and policy enforcement.
The year 2023 was a foundational year for Vietnam's fuel pricing policy. Decree 80 provided a new and more responsive framework for determining retail fuel prices, which has already delivered measurable improvements in transparency and market stability.
As the country continues to modernize its energy sector and integrate into global markets, this policy reform sets a strong precedent for building a more competitive, fair, and sustainable fuel trading environment. Whether you're a consumer, policymaker, or industry stakeholder, these developments offer a more predictable and equitable future for Vietnam’s petroleum market.
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