Fuel prices surge in Vietnam amid supply fears linked to Middle East conflict

Friday 20 March 2026 - 09:20

Fuel prices in Vietnam rose sharply overnight following a government decision to increase rates amid growing concerns over supply disruptions linked to the Middle East conflict.

The price of gasoline climbed by around 20%, while diesel surged by approximately 34% in a single adjustment. Since the escalation of tensions involving the United States, Israel, and Iran in late February, fuel prices in Vietnam have increased significantly overall, placing pressure on households and businesses.

Authorities have moved quickly to secure additional fuel supplies, reaching out to key partners such as Qatar, Kuwait, Algeria, and Japan. Despite reassurances that reserves remain sufficient in the short term, concerns about longer-term availability persist.

The impact of rising fuel costs is already being felt across the economy. Transportation and aviation sectors are under pressure, with authorities warning that domestic flights could be reduced if shortages intensify. Many citizens are also adjusting their daily routines, with some opting for alternative transport to cope with higher expenses.

The situation reflects broader challenges across Southeast Asia, where several countries are experiencing similar price increases and supply constraints. Analysts warn that continued instability in global energy markets could have lasting economic consequences for the region.