Vietnam Cuts Electricity Tariff 2% and Gasoline Excise Tax to Zero — What Changes November 1
· News Team
HANOI, November 1, 2026 — Vietnam has begun two measures intended to ease energy costs: a 2% reduction in its average retail electricity tariff and a temporary zero rate for the special consumption tax on gasoline. The measures take effect together, but they work differently — and neither guarantees that every household’s total energy bill will fall by the same percentage.
What changed for electricity users?
State utility Vietnam Electricity (EVN) said its average retail electricity price is now 2,159.9037 Vietnamese dong per kilowatt-hour, excluding value-added tax. That is 2% below the previous average of 2,204.0655 dong per kWh. EVN cited Decision 1305/QD-EVN, dated October 30, and a separate October 31 Ministry of Industry and Trade decision establishing prices for customer groups and electricity retailers.
The headline figure is an average tariff, not a promise that every household’s next invoice will be exactly 2% lower. Actual charges depend on the applicable customer category, tariff structure, consumption and taxes. For scale, the difference between the two published averages is about 44.16 dong per kWh; multiplied by 200 kWh, that would be roughly 8,832 dong before tax if those averages applied uniformly. It is an illustration, not an official bill estimate.
Gasoline’s special consumption tax falls to zero
Under government Resolution 45/2026/NQ-CP, issued October 31, the special consumption tax rate for gasoline is 0% from November 1, 2026, through March 31, 2027. The government says the duration could be shortened or extended through a further decision if economic or energy-security conditions warrant it. The measure replaces the relevant earlier special-consumption-tax rules for that period.
Before this change, the relevant rates included 10% for conventional gasoline, 8% for E5 blends and 7% for E10, according to Vietnam’s domestic-market authority. Setting this particular tax to zero does not mean gasoline becomes tax-free in every respect, nor does it by itself determine the pump price. Wholesale energy costs, exchange rates and other price-setting measures still matter.
Why the government is acting now
Officials frame the decisions as support for households, businesses and macroeconomic stability amid volatile energy costs. Lower power prices can reduce some operating expenses, while gasoline-tax relief may help transportation-intensive activity. The size of the benefit will depend on how the new tariffs and retail fuel prices flow through to consumers.
The distinction between the two policies matters: the electricity reduction is a change in the published average retail tariff, while the gasoline measure is a time-limited change to a specified tax rate. Neither announcement should be confused with a subsidy paid directly to consumers or with a verified estimate of the eventual effect on inflation.
Sources and verification
- Vietnam Electricity: official November 1 average retail tariff notice (October 31, 2026).
- Vietnam’s domestic-market authority: Resolution 45/2026 and gasoline excise-tax dates (October 31, 2026).
- Reuters: Vietnam energy-price measures (October 31, 2026).
Featured image: illustrative electricity transmission lines, photograph by Mazen Alseh / Unsplash. The photograph does not depict the policy announcement.
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