Vietnam Petrol Prices Surge 20% Amid Middle East Conflict

On Friday, the Vietnamese government announced a 20% increase in petrol prices, raising the cost of 95 octane gasoline to 30,690 Vietnamese dong per liter. This hike is attributed to fears of oil shortages linked to ongoing conflicts in the Middle East, particularly concerning Iran's control of the Strait of Hormuz, and the lingering effects of the Russia-Ukraine war.

Diesel prices experienced an even steeper rise of nearly 34%, reaching 33,420 dong per liter. Since the conflict began in late February, petrol and diesel prices have increased by 50% and 70%, respectively.

Vietnam's Trade Ministry stated that the government is initiating diplomatic efforts to secure fuel supplies from countries including Qatar, Kuwait, Algeria, and Japan. Concerns have also been raised regarding the aviation sector, with indications that domestic flights may be reduced due to potential fuel shortages.

However, officials remain cautiously optimistic that Vietnam has sufficient oil reserves to meet domestic demand until the end of April.