Fuel Costs Fall Again: RON95-III Hits 20,000 VND/Liter After New Price Update

Vietnam’s domestic fuel prices recorded a sharp decline in the latest adjustment on November 27. RON95-III fell to 20,000 VND/liter, while diesel dropped to 18,800 VND/liter, in line with the downward trend of global energy markets.

RON95-III Returns to the 20,000 VND/Liter Mark

Vietnam’s retail fuel market saw a notable adjustment in the price update released on November 27. According to the Ministry of Industry and Trade, retail fuel prices across the country were simultaneously reduced starting from 3:00 PM on November 27.

In the gasoline group, prices recorded steep declines:

RON95-III – the most widely used gasoline grade – decreased 540 VND/liter, bringing its price down to 20,000 VND/liter.

E5 RON92 dropped 520 VND/liter, now priced at 19,280 VND/liter.

This marks one of the rare occasions this year when gasoline prices have returned to the 20,000 VND/liter range, reflecting a strong correlation with the global downward price movement.

Diesel and Other Oil Products Also Decline

Not only gasoline, but oil products also recorded significant reductions compared to the previous adjustment:

Diesel: down to 18,800 VND/liter

Kerosene: down to 19,470 VND/liter

Mazut oil: down 250 VND/kg, now 13,480 VND/kg

The decline across all oil categories aligns with the global downtrend in crude oil prices last week, driven by concerns over slow demand recovery and abundant worldwide supply.

Price Stabilization Fund Remains Untouched

The Ministry of Industry and Trade confirmed that for this adjustment cycle, regulators continue to maintain the policy of neither deducting from nor using the Fuel Price Stabilization Fund (BOG) — a measure consistently applied since early 2024.

Petrolimex reported that the fund balance at the enterprise currently stands at 3.086 trillion VND, ensuring sufficient reserve capacity for future interventions if market volatility intensifies.

By not allocating or tapping into the fund, domestic fuel prices can more accurately reflect global market movements, easing financial pressure on consumers and businesses.

Why Fuel Prices Dropped Sharply in This Cycle

According to the Ministry of Industry and Trade, the price adjustments were based on three key factors:

1. Aligning with global price trends

During the 7 days preceding the adjustment, global fuel prices consistently dipped due to:

Lower demand forecasts

Increased supply in several regions

Market caution ahead of macroeconomic updates from the U.S. and China

2. Maintaining an appropriate price gap between E5 RON92 and RON95

The price difference encourages consumers to shift toward biofuel (E5 RON92), aligning with national energy-saving and environmental goals.

3. Balancing interests of all market participants

The pricing strategy aims to support:

Consumers

Fuel distributors and wholesalers

Government regulatory objectives

This approach ensures market stability, uninterrupted supply, and reduced cost burdens for both households and businesses.

Broader Economic Impacts

Consumers benefit directly

Lower gasoline prices ease the cost of commuting and daily transportation needs — especially during the year-end peak consumption period.

Businesses reduce operating costs

Industries with high fuel dependency, such as logistics, transportation, e-commerce, and delivery services, benefit immediately from the lower costs.

Macroeconomic stability improves

Fuel is a core input with strong spillover effects on CPI. Lower prices help:

Ease inflationary pressure

Support macroeconomic policy flexibility

Stabilize price levels during the final months of the year

Outlook: What’s Next for Fuel Prices?

Future price movements will depend on several key global factors:

Fluctuations in crude oil prices

OPEC+ production policies

Economic performance in major markets (U.S., China, EU)

Geopolitical developments in the Middle East and Europe

Seasonal global energy demand during winter

Analysts expect domestic prices to remain relatively stable in the near term but note that uncertainties in global supply-demand dynamics may trigger sharp adjustments.

Frequently Asked Questions

1. Why did RON95-III drop to 20,000 VND/liter?

Because global fuel prices declined sharply, and Vietnam maintained the policy of not using or contributing to the price stabilization fund.

2. How much did diesel prices fall?

Diesel dropped to 18,800 VND/liter, a significant decrease compared to last week.

3. Why is E5 RON92 cheaper than RON95?

The government maintains a price gap to encourage the use of biofuel, supporting environmental and energy-saving policies.

4. How much remains in the Price Stabilization Fund?

Petrolimex reports a balance of 3.086 trillion VND.