VINACHEM

The Vietnam Biofuel Association has petitioned the Government to replace RON92 gasoline with E5 bio-fuel in eight provinces and cities in a roadmap towards using the bio-fuel nationwide.

These localities are Hanoi, HCMC, Haiphong, Danang, Can Tho, Quang Ngai, Quang Nam and Ba Ria-Vung Tau. Earlier, major fuel wholesalers in HCMC made the same proposal.

The media recently reported RON92 might be replaced by E5. However, a representative of the Ministry of Industry and Trade confirmed that E5 petrol and RON92 gasoline would co-exist for the time being. The State now encourages more sales of E5 gasoline, saying a complete shift to this bio-fuel would happen when stable supply is guaranteed.

Quang Ngai, Quang Nam and Danang are the nation’s three provinces that have completely shifted to using E5, while other provinces and cities have had difficulty convincing private fuel dealers into selling E5 due to low demand.

The association said selling both types of gasoline is causing difficulties for retailers because they have to build separate pumping and storage systems for E5 at their current gas stations.

Fuel trading firms said consumers still prefer fossil fuels including RON92 because they are not used to using E5 and moreover, the E5 price is not much lower than RON92. Private pumping stations have shown reluctance to sell E5 for fear that their sales revenue would be affected.

Deputy Prime Minister Trinh Dinh Dung has assigned the Ministry of Industry and Trade to prepare a roadmap to replace RON92 with E5 at the request of the association and report to the Prime Minister in June.

In 2015, eight provinces and cities consumed more than 278,000 cubic meters of E5 petrol, about 15.72% of total gasoline sales.