In its recent notice, the ministry’s (MoIT) domestic markets department warned that continued instability in the Middle East could disrupt global energy markets but said Vietnam’s domestic supply remains stable for now thanks to refinery production and ongoing fuel imports.

Vietnam’s two major refineries - Dung Quat and Nghi Son - are currently operating normally and fulfilling fuel supply contracts with major distributors.

The Dung Quat refinery, located in the central province of Quang Ngai, is expected to maintain stable operations at about 118% of capacity until at least the end of April, continuing to supply fuel under signed contracts with major traders.

Meanwhile, the Nghi Son refinery and petrochemical complex, located in the central province of Thanh Hoa, is also operating steadily and has sufficient feedstock to support its production plan in the coming period, though the ministry did not specify a precise timeframe.

According to state-owned Petrovietnam, the country’s crude oil output is currently about 180,000 barrels per day, with roughly 150,000 barrels per day supplied to the Dung Quat refinery.

In addition to domestic production, gasoline distributors are continuing to import refined fuel, though import and transportation costs are rising.

“Together with the circulating reserves required at enterprises, gasoline supply for the domestic market in March is basically ensured,” the ministry said.

However, officials warned that if the conflict in the Middle East continues into April, the market could face greater supply pressures and higher costs.

The government, the Prime Minister, and relevant ministries are therefore working to remove bottlenecks and facilitate gasoline production and imports to maintain sufficient supply in the coming months.

The Prime Minister has also established a task force to ensure energy security, while the Ministry of Industry and Trade has created a specialized working group to monitor developments and propose policy responses.

Middle East conflict drives oil price surge

Global energy markets have become increasingly volatile following Iran’s attacks on oil refining and production facilities in neighboring countries. Saudi Arabia has shut down its largest refinery, while Qatar has halted liquefied natural gas production.

Tensions escalated further when Iran declared a blockade of the Strait of Hormuz, a critical shipping route that carries about 13 million barrels of oil per day, or roughly 31% of the world’s seaborne crude shipments.

The move forced hundreds of oil tankers to anchor or reroute around the Cape of Good Hope, significantly increasing transportation time and costs, according to the domestic markets department.

During Thursday’s trading session, U.S. WTI crude oil rose 8.5% to $81 per barrel, the biggest single-day increase since May 2020. The benchmark has climbed 21% this week. Brent crude also gained 4.93% to $85.41 per barrel.

According to calculations by the MoIT and the Ministry of Finance, the average global petroleum product price during the latest price management period between February 26 and March 5 reached $88.894 per barrel for RON92 gasoline used to blend E5 RON92 fuel, up 13.62%. Prices for other fuel products rose 14% to 43.8%.

As a result, Vietnam raised domestic fuel prices. The price of E5 RON92 rose by VND1,926, now capped at VND21,449 ($0.82) per liter, while that of RON95-III went up VND2,189 to a maximum of VND22,340 per liter.

The price of diesel 0.05S was set at VND23,037 ($0.88) per liter at the maximum, up VND3,758. Meanwhile, those of kerosene and mazut 180CST 3.5S are capped at VND26,601 per liter and VND17,496 per kilogram, up VND7,132 and VND1,807, respectively.

Some fuel stations in Hanoi and Ho Chi Minh City have posted notices saying they are temporarily out of fuel or limiting sales per refueling.

Businesses urged not to hoard fuel

Amid the volatile global energy market, the MoIT has called on gasoline businesses to maintain stable supply and avoid hoarding fuel or restricting sales in anticipation of price increases. Ensuring adequate supply to the market, the ministry said, is a key responsibility for gasoline traders.

Companies were also urged to strengthen business ethics and social responsibility, continuing to supply the market even during periods of price volatility. The ministry also encouraged the public to save energy and reduce dependence on fossil fuels, including by using public transport, electric vehicles, and biofuels.

“When the government, businesses, and citizens share responsibility and use energy efficiently and economically, the domestic petroleum market will remain stable, contributing to national energy security,” the ministry said.

Vietnam’s Government has issued Resolution No. 36/NQ-CP outlining urgent measures to safeguard national energy supply in response to the ongoing Middle East conflict.

Under the resolution, the government has authorized Petrovietnam and its subsidiaries, including Binh Son Refining and Petrochemical JSC and Petrovietnam Oil Corporation (PV Oil), to buy, sell, and import or export crude oil and feedstock used in fuel production.

The MoIT has been tasked with ensuring sufficient fuel supply for domestic production, business activities, and consumption, preventing shortages. It will also coordinate with Vietnam Electricity (EVN) and Petrovietnam to prioritize the use of domestically produced gas for power generation and introduce mechanisms to swap domestic gas with imported LNG if necessary.

The resolution also allows authorities to adjust retail fuel prices if the base price of widely consumed petroleum products rises by 7% or more compared with the previous price adjustment period.

Additionally, the government has asked the Ministry of Finance to revise preferential import tariffs on certain gasoline products and accelerate preparations for expanding the use of biofuels to reduce dependence on fossil gasoline.