--- title: Vietnam Cuts Fuel Tax and Power Tariffs for CPI 2026 description: Vietnam cut fuel excise tax to zero and lowered power tariffs by 2% from November 1, 2026, easing CPI pressure after 10-month inflation reached 4.57%. url: https://ginity.vn/en/blog/vietnam-cuts-fuel-excise-tax-and-power-tariffs-to-curb-inflation-2026 canonical: https://ginity.vn/en/blog/vietnam-cuts-fuel-excise-tax-and-power-tariffs-to-curb-inflation-2026 markdown: https://ginity.vn/en/blog/vietnam-cuts-fuel-excise-tax-and-power-tariffs-to-curb-inflation-2026.md language: en datePublished: 2026-11-05T00:00:00+07:00 dateModified: 2026-11-05T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ban biên tập Ginity analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: macro name: Macro & monetary url: https://ginity.vn/en/topics/macro tickers: [] sources: - name: Government News url: https://baochinhphu.vn/hop-bao-chinh-phu-thuong-ky-thang-10-dieu-hanh-kinh-te-vi-mo-cac-van-de-dan-sinh-duoc-quan-tam-102261104125644233.htm title: "Government Regular Press Briefing October 2026: Macroeconomic Management" - name: Government News url: https://baochinhphu.vn/tu-ngay-1-11-2026-thue-suat-thue-tieu-thu-dac-biet-doi-voi-xang-dau-cac-loai-la-0-102261031231855982.htm title: From November 1, 2026, special consumption tax rate on petrol is 0% - name: Government News url: https://baochinhphu.vn/gia-xang-giam-manh-xang-e5-giam-hon-1800-dong-lit-10226103122235494.htm title: Sharp drop in petrol prices, E5 falls over 1,800 VND per liter - name: Vietnam Electricity url: https://en.evn.com.vn/d/en-US/news/Adjustment-of-average-retail-electricity-price-effective-November-1-2026-60-142-501753 title: Adjustment of average retail electricity price effective November 1, 2026 - name: National Statistics Office url: https://www.nso.gov.vn/tin-tuc-thong-ke/2026/10/thong-cao-bao-chi-ve-tinh-hinh-gia-thang-chin-quy-iii-va-9-thang-nam-2026/ title: Press Release on Price Situation in September, Q3 and 9 Months of 2026 (Baseline Data) - name: Vietnam Investment Review url: https://www.tinnhanhchungkhoan.vn/gia-dien-giam-2-tu-1112026-post400575.html title: Electricity prices reduced by 2% from November 1, 2026 - name: CafeF url: https://cafef.vn/chinh-phu-danh-4000-ty-dong-giam-thue-tieu-thu-dac-biet-doi-voi-xang-188261101143312606.chn title: Government allocates 4,000 billion VND to reduce petrol excise tax publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # Vietnam Cuts Fuel Tax and Power Tariffs for CPI 2026 > Vietnam cut fuel excise tax to zero and lowered power tariffs by 2% from November 1, 2026, easing CPI pressure after 10-month inflation reached 4.57%. Gini · Macro & monetary · 2026-11-05 · https://ginity.vn/en/blog/vietnam-cuts-fuel-excise-tax-and-power-tariffs-to-curb-inflation-2026 _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - Vietnam 10-month 2026 average CPI climbed 4.57% year-on-year according to official Ministry of Finance figures released at the November 4, 2026 Government press briefing, exceeding the annual target of 4.5%. - On October 31, 2026, the Government enacted Resolution 45/2026/NQ-CP setting fuel excise tax to 0% and the Ministry of Industry and Trade issued Decision 2892/QD-BCT reducing retail power tariffs by 2%, both effective November 1, 2026. - The fuel tax holiday represents an estimated budget revenue forgone of approximately 4,000 billion VND over November and December 2026, and nearly 7,000 billion VND across the full 5-month duration through March 31, 2027. - Accounting for household electricity 4.81% basket weight and fuel 4.53% weight, the Ministry of Finance calculates these adjustments will shave 0.5 percentage points off month-on-month CPI in November 2026 and 0.08 percentage points off the full-year 2026 average. - The downstream transmission to consumer goods is conditioned by a stable diesel price of 30,240 VND/liter on October 31, 2026 and freight repricing lags, requiring close monitoring of agricultural prices into year-end 2026. Vietnam average Consumer Price Index for the first 10 months of 2026 rose 4.57% year-on-year, according to data released by Deputy Minister of Finance Nguyen Duc Chi at the [regular Government press briefing on November 4, 2026](https://baochinhphu.vn/hop-bao-chinh-phu-thuong-ky-thang-10-dieu-hanh-kinh-te-vi-mo-cac-van-de-dan-sinh-duoc-quan-tam-102261104125644233.htm). This 4.57% rate sits slightly above the full-year 2026 inflation ceiling of 4.5% mandated by the National Assembly, compressing policy headroom for the final two months of 2026. In response, on October 31, 2026, the Government unveiled a synchronized policy package setting the special consumption tax on petrol to 0% and lowering average retail electricity tariffs by 2%, both taking effect on November 1, 2026. Market analysts must carefully distinguish three critical chronological milestones: the 10-month 2026 inflation figure reflects price pressure accumulated before policy intervention, the decrees were signed on October 31, 2026, and practical enforcement began on November 1, 2026. The energy price reductions do not retroactively alter the realized 10-month 2026 inflation print; rather, they serve as forward-looking buffers designed to restrain headline price growth across November and December 2026. This analysis breaks down the legal mandates, quantifies state fiscal costs, and maps the transmission mechanisms into the consumer basket. ## Inflation Pressures Across 10 Months of 2026 Prior to entering fourth-quarter 2026, consumer prices had established an elevated baseline with 9-month 2026 average CPI rising 4.50% year-on-year, according to the third-quarter price release published by the [National Statistics Office on October 3, 2026](https://www.nso.gov.vn/tin-tuc-thong-ke/2026/10/thong-cao-bao-chi-ve-tinh-hinh-gia-thang-chin-quy-iii-va-9-thang-nam-2026/). During October 2026, consumer prices rose a further 0.2% month-on-month, lifting 10-month 2026 average CPI to 4.57% and core inflation to 4.24% according to official figures presented by Deputy Minister of Finance Nguyen Duc Chi at the Government press conference on November 4, 2026. With the 10-month average reaching 4.57% in 2026, any seasonal price spike in November or December 2026 would push the full-year average beyond the official 4.5% statutory target. According to official statistical records, the 4.57% baseline represents cumulative input cost inflation built up across the first three quarters of 2026, as examined in our study on [reading detailed power tariff reduction dynamics](/en/blog/electricity-price-cut-two-percent-impact-on-costs-and-inflation). The publication of this 10-month inflation data occurred after state authorities had already enacted the energy price cuts. Historical 10-month data functioned as the trigger for regulatory intervention, rather than an outcome affected by the November directives. ## Twin Policy Directives Announced on October 31, 2026 On the evening of October 31, 2026, the Government issued two statutory instruments targeting basic energy input costs. The primary fiscal instrument was [Resolution 45/2026/NQ-CP](https://baochinhphu.vn/tu-ngay-1-11-2026-thue-suat-thue-tieu-thu-dac-biet-doi-voi-xang-dau-cac-loai-la-0-102261031231855982.htm) signed by Deputy Prime Minister Nguyen Van Thang on October 31, 2026, which established a 0% special consumption tax rate for all petrol categories. According to the resolution text, this tax holiday applies from November 1, 2026 through March 31, 2027, spanning a 5-month window to cover peak holiday consumer spending. Concurrently on October 31, 2026, the Ministry of Industry and Trade issued Decision 2892/QD-BCT approving an updated electricity retail tariff schedule, while Vietnam Electricity enacted [Decision 1305/QD-EVN](https://en.evn.com.vn/d/en-US/news/Adjustment-of-average-retail-electricity-price-effective-November-1-2026-60-142-501753) on October 30, 2026 reducing average retail power tariffs by 2%. According to regulatory notices published on October 31, 2026, the revised power pricing schedule took effect nationwide on November 1, 2026, providing operational relief evaluated in our research on [examining transport fuel adjustments and cpi mechanics](/en/blog/fuel-price-cut-november-2026-transport-costs-cpi). Synchronizing both effective dates to November 1, 2026 established an administrative anchor for the final quarter of 2026. ## Fiscal Cost and Adjusted Energy Prices Setting petrol special consumption taxes to zero requires an explicit trade-off in state fiscal revenues. According to National Assembly discussions on October 31, 2026 reported by [financial journal CafeF on November 1, 2026](https://cafef.vn/chinh-phu-danh-4000-ty-dong-giam-thue-tieu-thu-dac-biet-doi-voi-xang-188261101143312606.chn), the central budget foregoes approximately 4,000 billion VND in tax receipts across November and December 2026. Deputy Minister of Finance Nguyen Duc Chi noted during the press conference on November 4, 2026 that total forgone revenue across the entire 5-month lifespan through March 31, 2027 will approach nearly 7,000 billion VND. On the retail pricing side, according to the joint price adjustment announcement on October 31, 2026 by the Ministry of Industry and Trade and Ministry of Finance published by [Government News on October 31, 2026](https://baochinhphu.vn/gia-xang-giam-manh-xang-e5-giam-hon-1800-dong-lit-10226103122235494.htm), E5RON92 petrol dropped by 1,804 VND/liter to a maximum of 24,223 VND/liter, and E10RON95-III fell by 1,575 VND/liter to a cap of 24,159 VND/liter effective from midnight on November 1, 2026. For electricity consumers, according to coverage by [Vietnam Investment Review on October 31, 2026](https://www.tinnhanhchungkhoan.vn/gia-dien-giam-2-tu-1112026-post400575.html), average retail tariffs dropped by 44.0797 VND/kWh on November 1, 2026, representing a 2% cut to 2,159.9037 VND/kWh excluding value-added tax. Crucially, retail diesel prices remained unchanged at 30,240 VND/liter under the official price decision announced on October 31, 2026. | Policy Measure | Regulatory Mandate | Enactment Date | Effective Window | Magnitude of Adjustment | Fiscal Revenue Impact | | :--- | :--- | :--- | :--- | :--- | :--- | | Zero petrol excise tax | Resolution 45/2026/NQ-CP | 31/10/2026 | 01/11/2026 - 31/03/2027 | E5 down 1,804 VND/l, E10 down 1,575 VND/l | ~4,000B VND forgone in 2026, ~7,000B VND over 5 months | | 2% power tariff reduction | Decision 2892/QD-BCT | 31/10/2026 | 01/11/2026 | Tariffs down 44.0797 VND to 2,159.9037 VND/kWh | Absorbed by internal EVN operating efficiency | | Diesel tariff unchanged | Joint announcement on October 31, 2026 | 31/10/2026 | 01/11/2026 | Maintained at 30,240 VND/liter | Zero additional fiscal compensation burden | Source: Compiled from Resolution 45/2026/NQ-CP, Decision 2892/QD-BCT, the joint price announcement on October 31, 2026, and the Government press briefing on November 4, 2026. > Chart: Estimated CPI Reductions from 2026 Fuel Tax and Power Tariff Cuts. percentage points. Direct Power Impact: 0.10; Direct Fuel Impact: 0.30; November 2026 MoM CPI: 0.50; Full-Year 2026 Average: 0.08. Source: Compiled from Ministry of Finance projections presented at the Government press briefing on November 4, 2026. ## Basket Weights and Quantitative CPI Transmission Within the national statistical accounting framework, every commodity category carries a fixed expenditure weighting. According to official data presented by the Ministry of Finance on November 4, 2026, household electricity within Group 4 for housing and utilities holds a basket weight of 4.81%. Meanwhile, consumer transport fuels within Group 7 for transportation command a weight of 4.53%. When regulated prices adjust, the direct mechanical contribution to the headline index is calculated using the standard transmission formula: $$\text{Direct CPI Impact} = \frac{\text{Commodity Price Change}}{\text{Initial Selling Price}} \times \text{Basket Weight} \times 100\%$$ In November 2026, according to our calculations, when average retail power rates fall by 2% with a household electricity basket weight of 4.81%, the direct reduction contribution shaves approximately 0.096 percentage points off the headline index. Similarly, petrol retail prices fell between 6.1% and 6.9% on November 1, 2026, which multiplied by the 4.53% transport weight generates a direct downward pressure of roughly 0.3 percentage points. According to econometric modeling published by the Ministry of Finance on November 4, 2026, energy reductions will lower month-on-month CPI in November 2026 by approximately 0.5 percentage points relative to October 2026. When averaged across the full 12 months of 2026, regulatory authorities estimate that this adjustment shaves roughly 0.08 percentage points off full-year average CPI in 2026. This technical decline creates breathing room to steer the 10-month average of 4.57% closer to the 4.5% annual target by the end of 2026. ## Transmission Constraints and Year-End Risks While an estimated 0.08 percentage point reduction in full-year 2026 average CPI provides measurable relief, market observers should not assume administrative cuts automatically resolve late-2026 inflationary pressures. According to technical economic analysis, the 0.08 percentage point figure represents a static simulation holding other market prices constant. Real-world pass-through from wholesale energy costs to retail consumer prices encounters several structural bottlenecks. First, commercial diesel fuel used by heavy freight trucks, maritime barges, and industrial generators was excluded from the excise tax waiver. According to the regulatory pricing decision on October 31, 2026, diesel retail prices remained unchanged at 30,240 VND/liter on October 31, 2026. Consequently, long-haul logistics carriers and industrial manufacturers saw no immediate drop in primary haulage costs. Operating expense reductions remain confined to urban light-commercial transport and consumer motorbikes. Second, freight contract duration creates repricing lags across distribution networks. Commercial transport agreements typically operate under quarterly or semi-annual fixed rate terms. Following petrol cuts on November 1, 2026, commercial shippers require one to two months to renegotiate transport tariffs. Lower distribution costs will not immediately filter into supermarket shelf prices for groceries or manufactured goods during November 2026. Third, consumer demand for agricultural produce and foodstuffs historically peaks during fourth-quarter festival preparations leading into year-end 2026. According to official 2026 statistical weights, food and catering services represent the single largest basket component at over 33% in 2026, meaning localized livestock disease or unseasonal rainfall can drive food inflation high enough to easily absorb the 0.08 percentage point energy benefit in 2026. Global Brent crude price volatility and USD/VND exchange rate pressures in late 2026 remain notable variables requiring coordinated monetary and fiscal policy. According to our overall assessment, the zero petrol excise tax and 2% electricity price cut enacted on November 1, 2026 offer practical fiscal assistance after 10-month 2026 CPI reached 4.57%. Allocating approximately 4,000 billion VND in fiscal resources across November and December 2026 secures a 0.08 percentage point buffer for full-year 2026 CPI, yet keeping annual inflation under 4.5% in 2026 remains tied to agricultural supply chain resilience and national logistics fluidity. ## Sources - Government News: [Government Regular Press Briefing October 2026: Macroeconomic Management](https://baochinhphu.vn/hop-bao-chinh-phu-thuong-ky-thang-10-dieu-hanh-kinh-te-vi-mo-cac-van-de-dan-sinh-duoc-quan-tam-102261104125644233.htm) (04/11/2026) - Government News: [From November 1, 2026, special consumption tax rate on petrol is 0%](https://baochinhphu.vn/tu-ngay-1-11-2026-thue-suat-thue-tieu-thu-dac-biet-doi-voi-xang-dau-cac-loai-la-0-102261031231855982.htm) (31/10/2026) - Government News: [Sharp drop in petrol prices, E5 falls over 1,800 VND per liter](https://baochinhphu.vn/gia-xang-giam-manh-xang-e5-giam-hon-1800-dong-lit-10226103122235494.htm) (31/10/2026) - Vietnam Electricity: [Adjustment of average retail electricity price effective November 1, 2026](https://en.evn.com.vn/d/en-US/news/Adjustment-of-average-retail-electricity-price-effective-November-1-2026-60-142-501753) (31/10/2026) - National Statistics Office: [Press Release on Price Situation in September, Q3 and 9 Months of 2026 (Baseline Data)](https://www.nso.gov.vn/tin-tuc-thong-ke/2026/10/thong-cao-bao-chi-ve-tinh-hinh-gia-thang-chin-quy-iii-va-9-thang-nam-2026/) (03/10/2026) - Vietnam Investment Review: [Electricity prices reduced by 2% from November 1, 2026](https://www.tinnhanhchungkhoan.vn/gia-dien-giam-2-tu-1112026-post400575.html) (31/10/2026) - CafeF: [Government allocates 4,000 billion VND to reduce petrol excise tax](https://cafef.vn/chinh-phu-danh-4000-ty-dong-giam-thue-tieu-thu-dac-biet-doi-voi-xang-188261101143312606.chn) (01/11/2026) ## Frequently asked questions ### What was Vietnam average CPI for the first 10 months of 2026? At the regular Government press briefing on November 4, 2026, Deputy Minister of Finance Nguyen Duc Chi reported that average CPI for the 10-month period of 2026 rose 4.57% year-on-year, while core inflation reached 4.24% and October 2026 CPI increased 0.2% month-on-month. ### When did the zero fuel excise tax and power tariff cut take effect? Both measures were announced on October 31, 2026 and took effect on November 1, 2026. Resolution 45/2026/NQ-CP exempts fuel special consumption tax until March 31, 2027, while Decision 2892/QD-BCT lowered average retail electricity prices to 2,159.9037 VND/kWh. ### How much state budget revenue is forgone due to the fuel tax holiday? The Ministry of Finance projects a revenue shortfall of roughly 4,000 billion VND in November and December 2026. Across the entire 5-month enforcement window ending on March 31, 2027, the forgone revenue is estimated at nearly 7,000 billion VND. ### What is the estimated quantitative impact on 2026 CPI? Based on statistical modeling by the Ministry of Finance, the combined reductions will lower November 2026 month-on-month CPI by approximately 0.5 percentage points and trim full-year 2026 average CPI by roughly 0.08 percentage points. ### Why should market observers avoid overstating the causal inflation impact? The 0.08 percentage point reduction reflects direct basket weighting. Year-end inflation still depends on unchanged diesel prices at 30,240 VND/liter for heavy logistics, delayed freight contract renegotiations, and potential food supply disruptions during late 2026. --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._