It is not easy to replace RON 92 gasoline with E5 biofuel

By June 1, 2016, 8 major provinces and cities must ensure the replacement of RON 92 gasoline with RON 92 E5 gasoline.

According to the latest direction of Deputy Prime Minister Hoang Trung Hai on the implementation of the roadmap for production and trading of E5 gasoline, 8 provinces and cities, namely Hanoi, Hai Phong, Da Nang, Quang Nam, Quang Ngai, Can Tho, Ba Ria - Vung Tau, Ho Chi Minh City, by June 1, 2016, must ensure that 100% of local gasoline retail stores sell E5 gasoline and 100% of RON 92 gasoline is replaced by RON 92 E5 gasoline. For other provinces and centrally-run cities, by June 1, 2016, at least 50% of local gasoline retail stores must sell E5 gasoline and 50% of RON 92 gasoline is replaced by RON 92 E5 gasoline.

Deputy Minister of Industry and Trade Do Thang Hai said that bringing biofuel to the market is not easy, but must be done to promote the production and consumption of biofuel products.

Currently, the country has 7 ethanol factories with a blending capacity of 8.6 million tons of E5 gasoline. Of these, 4 factories meet the standards for ethanol production to blend E5 biofuel. In general, the current amount of E5 gasoline is enough to meet consumer demand. E5 gasoline is a biofuel that helps reduce environmental impact, contributing to ensuring the national energy security strategy.

Biofuel consumption is still facing many difficulties.

Recently, 5 enterprises organizing the production and blending of E5 gasoline (including Vietnam Oil and Gas Group, Vietnam National Petroleum Group, Ho Chi Minh City Petroleum One Member Co., Ltd., Military Petroleum Corporation, STS Petroleum and Maritime Services Company, Hoa Khanh General Trading & Services Co., Ltd.) have proactively implemented the roadmap, invested in equipping tanks, mixing, storage and transportation vehicles suitable for E5 gasoline business.

In 2012, the Prime Minister issued Decision No. 53/2012/QD-TTg on promulgating a roadmap for applying the blending ratio of biofuels with traditional fuels. Accordingly, from December 1, 2014, gasoline produced, mixed, and traded for use in road motor vehicles consumed in the provinces and cities of Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho, Quang Ngai, and Ba Ria - Vung Tau is E5 gasoline.

Up to now, although there are nearly 8,000 stores selling E5 gasoline, the consumption of this type of gasoline is facing many difficulties.

Deputy Minister Do Thang Hai also said that localities have actively implemented the introduction of bio-fuel into the market, but the results are very different. By the end of 2015, if Quang Ngai had 97% of stores selling E5 gasoline, the figure for Hanoi was 20.4%, Can Tho was 16.4%, and Hai Phong only reached 7%.

Mr. Pham Van Phuong, Director of Hai Phong Department of Industry and Trade, said that the price of E5 gasoline is not really attractive compared to the price of A92 gasoline and the investment in upgrading is quite expensive, which is the reason why the business and consumption of E5 gasoline have not achieved the expected results.

Regarding this issue, a representative of Ha Son Binh Petroleum Company said that the price difference between RON 92 and RON 92 E5 gasoline is only 500 VND/liter, so it is not attractive to consumers. Due to slow consumption, high investment costs, and high gasoline loss rate, most petroleum companies are not enthusiastic about selling biofuel.

The Ministry of Industry and Trade also acknowledged that although localities and petroleum trading centers have actively promoted the benefits of biofuel to consumers, the attitudes of consumers in different localities are still different. If in Quang Ngai, Da Nang, Quang Nam, consumers have accepted the use of E5 gasoline without distinguishing it from mineral gasoline, then in other localities such as Hanoi, Ho Chi Minh City, Hai Phong, Can Tho, Ba Ria - Vung Tau, consumers are still hesitant to use this type of gasoline.

According to Baodautu