The Ministry of Industry and Trade rejects the proposal to "revive" A92 gasoline.

The Ministry of Industry and Trade has recently issued a document responding to Saigon Petro (Ho Chi Minh City Petroleum Company Limited) regarding its proposals on several issues related to environmental protection tax and petroleum development policies.

In its response, the Ministry of Industry and Trade stated that, according to reports from key petroleum businesses, domestic consumption of E5 gasoline in the first two months of 2018 reached over 593 cubic meters, accounting for approximately 41.5% of the total volume of all types of gasoline, an increase of about 32.5 - 33.5% compared to 2017 (in 2017, E5 RON 92 gasoline only accounted for about 8 - 9% of the total gasoline volume).

"This growth rate is a positive sign regarding the consumption of E5 gasoline," the Ministry of Industry and Trade assessed.

Regarding the mechanisms and policies for E5 gasoline, the Ministry of Industry and Trade stated that it will continue to coordinate with the Ministry of Finance to advise and propose to competent authorities the issuance of policies and mechanisms to encourage consumers to use E5 gasoline more.

Regarding the Fuel Price Stabilization Fund, the Ministry of Industry and Trade and the Ministry of Finance have been managing and utilizing the fund in accordance with the regulations and directives of the Government.

Therefore, the Ministry of Industry and Trade requests Saigon Petro to continue "maintaining its pioneering role in the development of biofuels," strictly adhering to the directives of the Prime Minister, and avoiding creating negative public opinion regarding the goals, policies, and guidelines of the State on biofuels in general, and E5 RON 92 gasoline in particular.

Previously, SaigonPetro had submitted a request to resume selling A92 gasoline due to the relatively low consumption of E5 gasoline in the market.

Saigon Petro has requested the Ministry of Industry and Trade and the Ministry of Finance to compile data on E5 gasoline consumption and take necessary measures to encourage consumers to use this type of gasoline more often.

For example, the environmental protection tax on E5 gasoline should be reduced by an additional 500 VND/liter, or this tax should not be levied on E5 gasoline based on the ethanol percentage as it is currently, but instead should be calculated on the absolute value of each type of gasoline.

If, despite implementing measures, E5 gasoline consumption remains low, SaigonPetro suggests that A92 gasoline should be reinstated.

The reason is that the consumption of E5 RON92 gasoline in the first two months of 2018 accounted for a very low proportion (less than 30% of the total gasoline consumption), while the rest was RON 95 gasoline (accounting for 70%), whereas previously A92 gasoline accounted for more than 65%.