On Friday, the Vietnamese government announced an overnight increase in petrol prices by more than 20%, raising the cost of 95-octane gasoline to 30,690 Vietnamese dong ($1.20) per litre. The government attributed this significant price surge to fears of oil and gas shortages caused by instabilities related to the ongoing war in the Middle East. In line with this, diesel prices jumped nearly 34% to 33,420 dong, reflecting the impact of rising global fuel costs on the local market.

The rising fuel prices are particularly concerning for Southeast Asian countries, including Vietnam, which have seen diesel prices surge following a series of strikes against energy infrastructure in the Gulf region, particularly Iran. Since the onset of the conflict in late February, prices for both regular octane 95 and diesel have soared substantially—over 50% and 70%, respectively—highlighting the vulnerability of these countries' fuel supplies to regional conflicts and geopolitical tensions.

Vietnam's trade ministry has communicated that the latest price hikes are a direct reflection of the broader implications of the Middle Eastern conflicts, alongside the consequences of the Russia-Ukraine war, which continues to exert stress on global energy markets. As Vietnam grapples with increasing fuel costs, it raises concerns about inflation and the potential economic impact on both consumers and various sectors dependent on fossil fuels, signalling an urgent need for local responses to mitigate these pressures.