PETROL MARKET BROADLY STABLE IN FIRST HALF OF 2025

A MoIT report indicates that Việt Nam’s domestic petrol market remained broadly stable in H1 2025, despite challenging global economic and political conditions.

A customer fills up at a petrol station on Trần Quang Khải Street, Hà Nội. — VNA/VNS Photo Trần Việt

HÀ NỘI — Việt Nam’s domestic petrol market remained broadly stable in H1 2025, despite challenging global geopolitical conditions, according to the Ministry of Industry and Trade (MoIT).

Minister of Industry and Trade Nguyễn Hồng Diên chaired a conference on Wednesday in Hà Nội to review petrol supply in the first half of the year and outline priorities for the remaining six months.

The ministry's report indicates that of the 29.5 million cubic metres of petrol products allocated to key traders this year, 28.3 million cubic metres were earmarked for ground fuels and 1.2 million cubic metres for aviation fuel.

From January to June, imports totalled approximately 4.8 million tonnes (5.8 million cubic metres), while domestic refineries produced about 7.8 million tonnes (9.4 million cubic metres). Domestic consumption reached 7.6 million tonnes (9.1 million cubic metres) and exports amounted to 226,000 cubic metres.

Overall supply to the domestic market in the first half of the year was 13.9 million cubic metres — 47 per cent of the annual allocation and a 1.1 per cent increase over H1 2024 — with average monthly consumption at 2.1 million cubic metres and inventories maintained at 1.7–1.8 million cubic metres.

Minister Diên noted that this outcome reflects steady Government oversight, coordinated support measures, and the adaptability of local producers and traders.

To prepare for possible international supply constraints, the Ministry has reinforced its strategic reserves to cover nearly one month of peak demand and diversified import contracts to reduce dependence on any single source. Permit processes have been strengthened so that only fully compliant operators manage critical fuel stocks, and the Domestic Market Management and Development Department has enhanced its reporting system for more timely updates on production, trade flows and inventory levels.

In addition, six draft decrees on petroleum trading submitted on 19 June aim to simplify regulatory requirements and enable prompt adjustments in response to global price shifts. Coordination with the Ministry of Finance and the State Bank of Việt Nam continues to ensure that the Petrol Price Stabilisation Fund remains readily available for market support if needed.

The Domestic Market Management and Development Department reports that most traders continue to meet reporting obligations on distribution, production, imports, exports, inventories and price-stabilisation funds, with only a few requiring follow-up reminders. As of June, there are 32 key fuel traders (27 ground fuel and five aviation fuel) and 262 distributors nationwide.

Looking ahead, H2 consumption is projected at around 13.2 million cubic metres (2.2 million cubic metres per month) and total supply at 14.3 million cubic metres, or 48.2 per cent of the annual allocation. The Ministry emphasises that continued collaboration across agencies and the industry will help Việt Nam navigate any further fluctuations in the global oil market.

Representatives from the Domestic Market Management and Development Department, the Petroleum and Coal Division, the Import–Export Department, the Planning, Finance and Enterprise Management Department and the Foreign Market Development Department, as well as industry associations, producers and petrol traders, were in attendance. — VNS

Source: VNS