On 20 March 2026, the Ministry of Economy and Finance issued Instruction No. 003 (“Instruction 003”) introducing a reduction of Value Added Tax (“VAT”) on the imported enterprise and domestic supply enterprise of regular gasoline and diesel fuel. This measure aims to mitigate the impact of rising international oil prices and reduce living costs.
Under this instruction, the VAT rate is reduced from 10% to 4%, with the State absorbing the remaining 6% VAT. This reduction would be effectively starting from 20 March 2026 until further notice from the Royal Government.
Instruction 003 is applied to enterprises engaged in the import and distribution of petroleum products (regular gasoline and diesel).
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