Two Price Hikes in Two Days: Vietnam's Fuel Prices Surge 30%, Diesel Breaks 30,000 VND

The Strait of Hormuz blockade has hit Vietnam's gas stations.

On March 5 and 7, Vietnam's Ministry of Industry and Trade raised fuel prices twice in rapid succession. Both increases were among the largest in recent years.

RON95 gasoline jumped from around 20,000 VND per liter to over 27,000 VND in just two days. Diesel crossed the 30,000 VND mark.

Some gas stations saw long lines before the price adjustments. A few even suspended operations temporarily.

Two Adjustments, Two Records

Vietnam normally adjusts fuel prices every Thursday, jointly decided by the Ministry of Industry and Trade and the Ministry of Finance based on global oil prices.

March 5 was a Thursday. At 3 PM, the first round took effect.
RON95 gasoline rose by 2,189 VND per liter to 22,340 VND.
Diesel went up 3,758 VND to 23,037 VND.
Kerosene saw the steepest jump, surging 7,132 VND to 26,601 VND.

Just two days later, on Saturday, March 7, the second round hit. This was not a regular adjustment day. On March 6, the government had issued Resolution 36, allowing immediate price adjustments whenever the global benchmark moves more than 7%.
RON95 climbed another 4,707 VND to 27,047 VND.
Diesel surged 7,207 VND, breaking 30,000 to reach 30,239 VND.
Kerosene jumped 8,490 VND to 35,091 VND.

Combined, RON95 rose about 34%, diesel nearly 57%, and kerosene around 80%. This was Vietnam's sharpest fuel price adjustment since the 2022 Russia-Ukraine war spike.

Why Such a Massive Increase

The direct cause is the Strait of Hormuz blockade.

After the US and Israel launched airstrikes on Iran on February 28, Iran's Revolutionary Guard blocked the Strait of Hormuz. About 20% of global oil consumption passes through this waterway. After the blockade, tanker traffic dropped by 70%.

Global oil prices surged immediately. Between March 5 and 7, the international average for RON95 refined fuel reached USD 116 per barrel, up 26% from pre-conflict levels.

Vietnam's fuel pricing mechanism tracks global oil prices directly. When international prices rise, domestic prices follow. The weakening Vietnamese dong against the US dollar pushed import costs even higher.

Vietnam imports 88% of its crude oil from Kuwait, and Kuwaiti tankers must pass through the Strait of Hormuz to exit the Persian Gulf. With the strait blocked, getting that oil to Vietnam became a real problem.

Long Lines at Gas Stations, Some Suspending Sales

Consumers reacted predictably: they rushed to fill up.

In the days before the price hikes, gas stations across the country saw long queues as drivers topped off their tanks.

A gas station operator in Lam Dong province said they normally receive four fuel trucks per week (19 cubic meters each), but recently got only one. Distributors were slowing shipments in anticipation of price increases.

In Ho Chi Minh City, a gas station under Tan Cang (Saigon Newport) briefly issued a notice suspending fuel sales to external vehicles, citing concerns about supply chain disruption if the Middle East conflict dragged on. The notice was withdrawn the next day after alternative suppliers were secured.

What the Government Says

The Ministry of Industry and Trade said March fuel supply is "basically guaranteed."

State oil groups Petrolimex and PetroVietnam both confirmed adequate inventory levels and said they are diversifying import sources.

The ministry also urged citizens to conserve fuel, use public transportation or electric vehicles, and warned businesses against hoarding or speculative withholding.

Since the beginning of the year, Vietnam has raised fuel prices seven times and lowered them four times. The overall trend has been upward.

What happens next depends on the Middle East situation. If the Strait of Hormuz reopens soon, prices could ease. But if the blockade extends into April, Vietnam's fuel supply and inflation pressures will intensify further.