Reduce price to stimulate demand for E5 gasoline

A source from the Ministry of Finance said there is a plan to stimulate demand for E5 gasoline.

Specifically, according to current regulations, for bio-fuels, such as E5 gasoline, B5 diesel with a ratio of 4%-5% ethanol; E10 gasoline, B10 diesel containing a ratio of 9%-10% ethanol, environmental protection tax is only calculated based on the ratio of fossil-based gasoline and oil in bio-fuels.

Illustration photo.

However, to further encourage the production and use of gasoline and bio-oil in accordance with the Prime Minister's direction, the Ministry of Finance has proposed to supplement regulations on environmental protection tax rates according to two options.

Option 1, for E5 gasoline and B5 oil, the specific tax rate is equal to 80% of the specific tax rate of fossil gasoline and diesel oil respectively.

For E10 gasoline and B10 diesel, the specific tax rate is 70% of the specific tax rate of fossil gasoline and diesel respectively.

According to this plan, the environmental protection tax rate for fossil gasoline is 3,000 VND/liter, the environmental protection tax rate for E5 gasoline is 2,400 VND/liter (a decrease of 600 VND/liter compared to fossil gasoline) and the environmental protection tax rate for E10 gasoline is 2,100 VND/liter (a decrease of 900 VND/liter compared to fossil gasoline).

Option 2 has a lower incentive level than option 1. Accordingly, the incentive level for the two groups of E5 gasoline, B5 diesel oil and E10 gasoline, 10 diesel oil is 90% and 80% of the specific tax rate of fossil gasoline and diesel oil respectively.

Accordingly, the environmental protection tax on E5 gasoline will be 2,700 VND/liter (reduced by 300 VND/liter) and E10 will be 2,400 VND/liter (reduced by 600 VND/liter).

To encourage the production and use of E5, E10, B5, B10 bio-fuel and gasoline and to be consistent with the regulations of the special consumption tax policy, the Ministry of Finance proposes to choose option 1.

These proposed options are proposed in the context of many biofuel factories with construction costs of thousands of billions but "shelved" and stopped operating, such as Dung Quat, Phu Tho or Binh Phuoc biofuel factories... The price difference of biofuel on the market is also not attractive to users, so consumption is very difficult.

To promote the consumption of biofuel, reduce dependence on mineral gasoline and protect the environment, from 2018 the Government only allows the sale of E5 RON 92 and RON 95 gasoline.

The Government also assigned the Ministry of Industry and Trade to calculate a suitable and feasible roadmap and steps to replace all RON 92 mineral gasoline with E5 RON 92 gasoline, continue to deploy E10 gasoline, ensuring that it does not affect the production and business activities of traders and the use of people.

Meanwhile, the Ministry of Finance is assigned to inspect and supervise the management of gasoline prices to ensure that the cost of bio-fuel products (E5 RON 92, E10) does not increase, moving towards making the price of E5 RON 92 and E10 gasoline attractive to users.

According to VnEconomy