Proactively securing supply
Le Xuan Huyen, Deputy General Director in charge of the Executive Board of Petrovietnam said that immediately after the outbreak of hostilities involving the US, Israel and Iran, the group instructed its production and business units to closely monitor geopolitical and market developments in order to build response scenarios, adjust production plans and prepare supply sources to ensure domestic fuel availability.
In the immediate term, the group’s representative at Nghi Son Refinery and Petrochemical has worked with foreign partners to urgently provide reserve crude oil to maintain the plant’s operating capacity. In the longer term, the group has proposed that the Government and the Ministry of Foreign Affairs engage partners in Kuwait and Japan with the aim of mobilising crude oil reserves from Japan and the Republic of Korea to temporarily support continuous and safe plant operations, especially during the upcoming peak demand period.
The group has also worked with oil contractors to maximise the sale of domestically produced crude oil to local refineries in urgent circumstances, while directing the Viet Nam Oil Corporation (PVOIL) to develop import plans, diversify supply sources and shipping routes according to different scenarios. At the same time, refineries have strengthened safety control and optimised operating capacity.
Petrovietnam leaders also noted that supply remains secure for the next few months. In the following period, depending on developments in the Middle East, competent authorities should soon consider removing regulatory bottlenecks to enable the group to respond flexibly while safeguarding growth targets and national energy security. In particular, Petrovietnam is currently restricted in its authority to import crude oil for refineries under Decree No. 83/2014/ND-CP, while the tax rate of more than 0% on condensate and naphtha is affecting production efficiency, operational flexibility and the diversification of input materials.
To strengthen emergency response capacity, the Government should consider granting Petrovietnam and its subsidiaries the authority to import crude oil and feedstock in order to ensure timely supply for domestic refineries. At the same time, regulatory agencies should conduct a comprehensive review of existing regulations, particularly Decree No. 83, in order to adjust energy policies in line with the new context. The State Bank of Viet Nam has instructed commercial banks to adopt policies to ensure foreign currency availability for businesses as fuel import demand rises sharply, while tax authorities are considering reducing import duties on production and blending inputs such as condensate, naphtha and bottom DO to 0%, in line with crude oil, in order to ease cost pressures and improve production efficiency for businesses.
Le Xuan Huyen, Deputy General Director in charge of the Executive Board of Petrovietnam
“To strengthen emergency response capacity, the Government should consider granting Petrovietnam and its subsidiaries the authority to import crude oil and feedstock in order to ensure timely supply for domestic refineries. At the same time, regulatory agencies should conduct a comprehensive review of existing regulations, particularly Decree No. 83, in order to adjust energy policies in line with the new context. The State Bank of Viet Nam has instructed commercial banks to adopt policies to ensure foreign currency availability for businesses as fuel import demand rises sharply, while tax authorities are considering reducing import duties on production and blending inputs such as condensate, naphtha and bottom DO to 0%, in line with crude oil, in order to ease cost pressures and improve production efficiency for businesses,” Huyen stressed.
The leader of Viet Nam National Petroleum Group (Petrolimex) said the conflict in the Middle East has disrupted fuel supply chains, as Asia’s crude oil supply depends heavily on the region. With crude oil supply constrained, some countries and production plants have suspended exports to secure domestic supply, making it harder to source fuel and driving up oil prices as well as market surcharges, insurance costs and freight rates.
In response, the group has reported to the Ministry of Industry and Trade and proposed several measures to ensure market supply. As of early March 2026, Petrolimex’s system-wide inventories comply with regulations on petroleum trading and are sufficient to meet demand across its distribution network.
The group has also taken the initiative in securing monthly supplies from the two domestic refineries while importing sufficient volumes to meet its planned demand. In parallel, it instructed its petroleum trading units nationwide to coordinate with local authorities, work out dispatch plans and implement measures to ensure adequate supplies, fully meeting consumer demand as well as production and business needs across Petrolimex’s distribution system.
Strictly handling hoarding and speculation
A survey of several petrol stations shows that many retailers are concerned about potential supply shortages due to the negative impacts of the Middle East conflict.
The owner of a petrol station in Ha Dong Ward, Ha Noi said that the station has faced supply shortages as wholesalers and. To secure supplies to meet public demand, the outlet hopes that relevant authorities will introduce measures to help connect and coordinate with other primary distributors, or create conditions for it to sign supplementary supply contracts as soon as possible.
Amid pressure on global fuel supply, the Ministry of Industry and Trade recently issued a directive to strengthen inspection and supervision of petroleum trading activities. Functional forces are required to closely monitor local markets and track supply, demand and actual selling prices. Their key task is to promptly detect irregularities, including signs of artificial shortages, unreasonable price increases or unjustified suspension of sales.
Inspections of petroleum enterprises and retail outlets will also be intensified to prevent hoarding or selling fuel at prices different from those listed. Enforcement activities must ensure timely detection, prevention and strict handling of violations, especially hoarding to create artificial shortages, price manipulation, sales not in line with listed prices, or the trading of smuggled or unverified fuel that does not meet quality standards.
Regarding domestic fuel supply in the coming period, Chairman of the Viet Nam Petroleum Association Bui Ngoc Bao said that the Middle East conflict will significantly affect Nghi Son Refinery, which mainly processes crude oil from Kuwait, while Dung Quat Refinery is less affected because it relies largely on domestic crude oil. Together, the two refineries currently supply more than 70% of domestic demand, with the remainder imported from countries such as Singapore and the Republic of Korea.
If domestic supply becomes insufficient, wholesalers will increase imports according to their assigned quotas to meet consumption demand. However, the key bottleneck in ensuring supply when domestic output declines is that fuel prices must be calculated accurately and fully to prevent wholesalers from incurring losses.
To address this bottleneck, the Government should consider approving the draft decree on petroleum management to replace the existing regulations. Once the new decree is issued, wholesalers and petrol retailers will have the authority to determine fuel prices, while regulators will focus on supervision and post-inspection. In such a mechanism, even when the market fluctuates, wholesalers will still be able to ensure adequate supply for the market, Bao emphasised.
