Vietnam Fuel Prices Fall Sharply After US-Iran Deal Eases Oil Market

Retail fuel prices in Vietnam were adjusted downward on Thursday afternoon, reflecting a recent slide in global oil prices following a peace agreement between the United States and Iran. The price of E10 RON95 gasoline fell by 5.93% to VND20,750 ($0.79) per liter, while biofuel E5 RON92 decreased by 5.67% to VND20,120. Diesel prices experienced a steeper decline of 9% to VND23,530 per liter.

In a joint statement, the Ministry of Industry and Trade and the Ministry of Finance attributed the drop to developments in global petroleum markets. A memorandum of understanding signed by the U.S. and Iran to end their conflict and reopen the shipping route through the Strait of Hormuz has pushed global fuel prices lower over the past seven days. The price of RON92 gasoline fell 7.28% to $107.9 per barrel, while RON95 declined to $110.9 per barrel. Diesel and fuel oil prices dropped by 12.9% and 14.7%, respectively.

The price adjustment comes as Vietnam continues its transition to biofuels. According to official data, more than 17,000 gas stations nationwide had switched from RON95 to E10 RON95 gasoline by June 1. By June 15, the country had consumed 520 million liters of biofuels, of which E10 accounted for over 93% of the total at 485 million liters.

Automobile and motorcycle manufacturers have confirmed that most vehicle models in the country are compatible with E10 gasoline, with the exception of some very old vehicles. Authorities and key petroleum traders have not recorded any incidents or official complaints concerning fuel quality or vehicle damage caused by E5 and E10 gasoline. To meet demand, half of the country's key petroleum traders have invested in biofuel blending systems. Seven licensed companies, together with the Dung Quat Refinery, provide a combined production capacity of approximately 1.1 million cubic meters per month, which is considered sufficient to meet national needs.