Vietnam deployed its fuel price stabilization fund to shield consumers from surging energy costs as Middle East tensions threatened global supplies. The government began disbursing funds from midnight Tuesday, capping retail price increases at 5,000 dong ($0.20) per liter. Without intervention, RON-95 gasoline would have jumped 22.45%, while diesel and kerosene prices would have risen 18.12% and 3.69% respectively.

Prime Minister Pham Minh Chinh ordered officials to prevent energy shortages under any circumstances, though he maintained the country's energy situation remains "under control." The fuel price stabilization fund can sustain current intervention levels for approximately three to four weeks, according to SSI Securities Corp. economist Pham Luu Hung. Vietnam's trade ministry urged citizens to work from home and use public transport to conserve fuel.

The government also directed officials to diversify crude oil sources and increase imports to meet 30% of the nation's fuel needs from overseas suppliers. Finance Ministry officials must propose eliminating the environmental protection tax on fuel by March 12, which could reduce retail prices by up to 2,000 dong per liter in future adjustments. The measures come as import-dependent Vietnam faces mounting pressure from global energy market volatility.