Vietnam to tap emergency fund to cool surging fuel prices
Vietnam initially resisted dipping into its Fuel Price Stabilisation Fund as unleaded gasoline rose 21 percent and diesel spiked more than 50 percent after the United States and Israel launched their attack on Iran in late February.
At a meeting of the country's energy security task force on Tuesday, however, the prime minister "agreed in principle" with a proposal by the trade ministry to draw from the fund, the government said on its website.
"This should be implemented immediately on March 10th," it added.
Funded by major fuel distributors in Vietnam, the fund has not been used since 2023 and currently has a surplus of more than $200 million.
For the last two days, cars and motorcycle riders have lined up at petrol stations across the country, waiting to refuel in anticipation of future price hikes.
A 57-year-old who gave his name as Tuan told AFP at a Hanoi petrol station that he was furious after waiting for almost an hour to gas up.
"I still have enough to run my motorbike today, but definitely I have to fill it tonight. Then I have to queue again tonight?" he said.
Vietnam scrapped duties on many imported petroleum products on Monday in an effort to prevent fuel shortages and stabilise the domestic market.
It also encouraged companies to allow employees to work from home "whenever feasible" to alleviate demand for fuel, the government said on its website.
Hanoi recommended the public limit the use of personal vehicles, and instead opt for public transit, cycling or carpooling.