Vietnam cuts power tariffs and gasoline tax

Vietnam’s average retail electricity price is being reduced by 2% from Nov 1, 2026, marking the first decrease in nearly two decades of generally rising power tariffs. The new average retail price is set at 2,159.9 dong per kilowatt-hour, excluding value-added tax, as announced by Vietnam Electricity and confirmed in recent government decisions.

This adjustment follows a review of the state utility’s operations and efforts to calculate and cut costs. The reduction is intended to support people and businesses, help stabilise the macroeconomy and ensure social welfare after many years in which electricity prices had only moved higher, apart from temporary Covid-19 support programmes.

This represents a 2% decrease compared with the prevailing average retail price prior to the adjustment.

In parallel, the Ministry of Industry and Trade issued Decision No. 2892/QD-BCT on Oct 31, 2026, specifying electricity selling prices for different customer groups and retail units, also effective from Nov 1. While the nationwide average tariff is lower, the actual reduction in each customer’s bill will depend on consumption volumes and the specific tariff schedules applied to each usage category.

At a National Assembly session on economic and social issues on Oct 31, Deputy Prime Minister Nguyen Van Thang said the government had directed Vietnam Electricity to cut costs as much as possible to enable the roughly 2% reduction in the average retail electricity price. He noted that the electricity price cut, together with a planned tax adjustment for fuel, was designed to contribute to macroeconomic stability and social welfare.

He stated that the combined impact of cheaper electricity and the fuel tax change would provide about 0.07 percentage points of additional room to control inflation and support the inflation target of 4.5% set by the National Assembly. The measures are positioned as tools to reduce cost pressures on households and businesses while maintaining price stability.

Alongside the electricity tariff reduction, Vietnam is cutting its special consumption tax on gasoline to zero from a previous range of 7% to 10%. The tax waiver will apply from Nov 1, 2026, until the end of March the following year, covering several months of fuel consumption across the economy.

The government has stated that the removal of the gasoline tax, together with the electricity price cut, aims to support economic stability and lower costs for households and businesses. These steps are intended to ease financial burdens on energy users and contribute to broader growth and stability objectives.