Vietnam Fuel Prices Soar Amid Middle East Tensions, Squeezing Transport Sector
In March 2026, petrol stations across Vietnam experienced extensive queues as customers rushed to refuel amid a sharp surge in prices, driven by escalating tensions in the Middle East. The price of RON95, the most widely used gasoline in the country, rose to 33,840 Vietnamese dong (approximately 1.34 U.S. dollars) per liter on March 24, 2026, while diesel climbed to nearly 39,660 Vietnamese dong (about 1.58 dollars) per liter. These figures, reported by local daily VnExpress and cited from the Ministry of Industry and Trade and the Ministry of Finance, represent the highest levels since June 2025.
Significant Price Increases and Economic Pressure
Compared to the end of February, before the tensions escalated, the price of RON95 surged by more than 13,000 Vietnamese dong (around 0.5 dollars), marking an increase of over 60 percent. This sharp rise is putting direct pressure on living costs and transport operations across Vietnam. The impact is particularly severe for workers whose livelihoods depend heavily on daily transportation, as rising fuel costs weigh on their incomes.
Nguyen Luu Anh Dat, a ride-hailing motorbike driver in Hanoi using the Grab platform, highlighted the financial strain. "Previously, I only needed about 80,000 Vietnamese dong (about 3.1 dollars) to fill up my tank for a full day of work. Now it costs around 120,000 Vietnamese dong (about 4.7 dollars), meaning I spend an extra 40,000 Vietnamese dong (about 1.6 dollars) per day, or more than 200,000 Vietnamese dong (about 8 dollars) per week," he told Xinhua. He added that although customer numbers remain stable, the biggest challenge is now carefully calculating routes to save fuel and avoid inefficient trips.
Transport Sector Adapts to Rising Costs
Against this backdrop, transport business operators are finding it difficult to raise service prices as a solution. Nguyen Van Toan, a transport business operator in Hanoi, explained that sharp price hikes could drive customers away, especially with strong competition from other modes of transport, such as electric vehicles. "We only dare to increase prices slightly to retain regular customers. We cannot raise prices abruptly because competition in the market is very intense," he said.
Instead, many operators are opting to optimize their operations to cut costs. Toan mentioned that he tries to arrange trips more efficiently and secure passengers for both outbound and return journeys to avoid running empty. This strategic adjustment is becoming a common practice in the sector to mitigate the financial impact.
Broader Impact on Aviation and Rail Services
The ripple effects of rising fuel prices are being felt more broadly in the transport sector, including aviation and rail services. Following a warning from the Civil Aviation Authority of Vietnam over a possible aviation fuel shortage, national flag carrier Vietnam Airlines plans to cut 23 flights per week on low-demand routes starting from April 1. Additionally, starting from March 26, Vietnam Railways officially increased passenger ticket prices by 3 percent, reflecting the broader cost pressures.
Economic Outlook and Inflation Concerns
Economist Vo Dai Luoc, former head of the Institute of World Economics and Politics under the Vietnam Academy of Social Sciences, provided insight into the macroeconomic implications. He noted that although rising fuel prices have affected citizens' daily expenses, the impact has not been significant enough to drive a sharp increase in inflation or pose risks to Vietnam's economic growth targets. "Inflation and economic growth targets may be affected, but not substantially," he told Xinhua. This perspective suggests a cautious optimism amid the ongoing challenges, as the economy navigates the pressures from global tensions and domestic adjustments.
