Vietnam sees petrol prices shoot up overnight by 20% on fears of shortage

Vietnam experienced a sudden spike in petrol prices exceeding 20% as the government reacts to global oil shortages linked to the Middle East conflict.

The cost of petrol rose more than 20 percent in Vietnam on Friday after the government announced an overnight hike amid fears of oil and gas shortages caused by the Middle East war.

Petrol prices in Vietnam rose over 20% due to fears of oil shortages from the Middle East war, with gasoline reaching 30,690 dong per litre and diesel 33,420 dong. (AFP)

Southeast Asian countries have borne the brunt of surging diesel prices following strikes against energy infrastructure in Iran and the Gulf states.

Just before midnight Thursday, the Vietnamese government announced an increase in the price of 95-octane gasoline by 20 percent from the weekend to 30,690 Vietnamese dong ($1.20) per litre, while diesel was hiked nearly 34 percent to 33,420 dong.

The increase takes the prices of regular octane 95 and diesel in the manufacturing hub to more than 50 and 70 percent higher, respectively, since the conflict began in late February.

Vietnam's trade ministry said in a statement posted online that the hike was a result of the conflict in the Middle East, Iran's control of the key Strait of Hormuz and the Russia-Ukraine war, which have influenced global fuel prices.

The government said Prime Minister Pham Minh Chinh had held phone talks asking for fuel support from several countries including Qatar, Kuwait, Algeria and Japan.

The aviation authority has warned of a possible reduction in domestic flights because of potential fuel shortages.

But state media quoted officials as saying the country can ensure enough oil and gas for domestic consumption until the end of April.

A Hanoi resident told AFP on Friday that the price hikes had reduced the traffic flow on the capital's normally busy roads.

"The traffic seems to ease as I think many cannot afford this continuous hike in the fuel cost like myself," office worker Minh Anh said after catching a train to work.

"Ordinary people like myself are the end sufferers of this fuel crisis," she told AFP.

Neighbouring Laos on Thursday ordered all schools nationwide to cut their week to three days starting next week, as fuel shortages and higher prices disrupted transport and daily life across the landlocked country.

In Myanmar, prices at the petrol pump increased about 30 percent from Thursday into Friday.

AFP journalists saw long queues of vehicles at a petrol station near Mandalay as motorists rushed to fill their tanks.

Thailand also saw prices of fuel shoot up this week, as the government announced higher diesel rates on Wednesday.