The decision is set to take effect from July 11 after it was made at the Committee’s extraordinary session on Wednesday.

Specifically, environmental protection tax on gasoline will be reduced to VND1,000 per liter from the current VND 2,000.

Environment protection tax on jet fuel will be lowered to VND1,000 per liter from the current VND1,500.

Environment protection tax on diesel oil will be cut to VND500 per liter from the current VND1,000.

Environment protection tax on mazut oil and lubricants will be reduced to VND300 per liter from the current VND1,000.

Environment protection tax on grease will be lowered to VND300 from the current VND1,000.

Meanwhile, tax on kerosene remains unchanged at VND300 per liter as it has stood at the floor level.

National Assembly Chairman Vuong Dinh Hue also asked the Government to promptly mull over reduction of other taxes and fees related to petrol products including special consumption tax and value added tax (VAT).

The tax costs related to the composition of gasoline prices in Viet Nam were quite large, ranging from 30 to 45 per cent of petrol prices, including import tax, special consumption, value-added tax, and business expenses.

Rising petrol prices will certainly affect the transportation and logistics industries, and drive up the costs of other industries, putting big pressure on inflationary control efforts.