HÀ NỘI — The National Assembly has approved a resolution cutting multiple fuel-related taxes to zero, in a move aimed at stabilising domestic energy prices amid global volatility.

All 460 deputies present voted in favour of the measure on April 12, equivalent to 92 per cent of the total membership.

The resolution sets the environmental protection tax on petrol (excluding ethanol), diesel, kerosene, mazut and aviation fuel at zero đồng per litre. It also removes value-added tax (VAT) obligations on these fuels, while still allowing input VAT deductions. The special consumption tax on petrol is reduced to 0 per cent.

The policy will take effect from April 16 to June 30, 2026.

Lawmakers authorised the Government to adjust the duration of the measure or revise tax provisions in urgent cases, depending on global market developments. Any such changes must be reported to the National Assembly at its nearest session.

During the validity period, the resolution will take precedence over other conflicting tax regulations. Businesses and importers will not be required to declare or pay VAT at the sale or import stages for the specified fuels.

Other provisions on environmental protection tax, value-added tax and special consumption tax not specified in the resolution will continue to follow existing tax laws and relevant regulations.

Minister of Finance Ngô Văn Tuấn said the Government had incorporated feedback from deputies and relevant agencies to finalise the draft, with broad consensus supporting the tax cuts.

In global markets, oil prices posted their steepest weekly decline since 2022. West Texas Intermediate (WTI) crude fell from US$112.06 per barrel at the end of last week to $96.57 on Sunday, down $15.49, or 13.7 per cent. Brent crude dropped from $109.3 to $95.20 per barrel, a decrease of $14.1, or 13 per cent.

Analysts attributed the sharp fall to expectations of diplomatic progress between the US and Iran. However, geopolitical risks remain, as tensions continue and oil flows through the Strait of Hormuz are still heavily restricted.

Domestically, retail fuel prices have declined sharply in recent adjustments, with diesel posting the steepest drop and falling by around VNĐ12,000 per litre over the past week, from about VNĐ45,000 to roughly VNĐ33,000 per litre.

Meanwhile, E5RON92 fell by VNĐ2,393 per litre to VNĐ22,344, while RON95-III dropped by VNĐ2,993 to VNĐ23,543 per litre.

The tax cuts are aimed at cushioning the impact of global price volatility on the domestic market. — VNS