Ho Chi Minh City: Government agencies are expected to use E5 gasoline.

It is expected that government vehicles and businesses in Ho Chi Minh City that use state budget funds will be required to use E5 gasoline. This is a solution aimed at increasing demand for E5 gasoline.

Yesterday afternoon (July 4th), the Ho Chi Minh City People's Committee held a meeting on the roadmap for distributing E5 bioethanol fuel in Ho Chi Minh City, chaired by Vice Chairman of the People's Committee Tat Thanh Cang, with the participation of representatives from the Department of Industry and Trade, the Department of Finance, the Department of Science and Technology, and leading petroleum businesses in Ho Chi Minh City.

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Therefore, the plan to develop an additional 115 E5 gasoline stations in Ho Chi Minh City by the end of June 2015, as previously planned by the Department of Industry and Trade, could not be implemented. To date, the number of E5 gasoline stations in Ho Chi Minh City has decreased compared to the time when E5 sales were launched in early December 2014. According to updated information from the Department of Industry and Trade, Ho Chi Minh City currently has 55 E5 gasoline stations.Regarding promoting the consumption of E5 bioethanol fuel in Ho Chi Minh City, petroleum businesses suggest that for gasoline with an octane rating of 92, only one type, E5 RON 92 bioethanol fuel, should be distributed, instead of selling both Mogas 92 and E5 RON 92 as is currently the case. Selling both types of fuel has caused considerable difficulties for gas stations.

Mr. Tat Thanh Cang, Vice Chairman of the Ho Chi Minh City People's Committee, said that in the near future, the city will consider requiring owners of official vehicles belonging to state agencies and businesses in Ho Chi Minh City that are using state budget funds to use E5 gasoline. The Department of Industry and Trade will coordinate with the Department of Finance to calculate this plan. Only then can we encourage and persuade people to switch to using E5 gasoline.

The switch to E5 gasoline by government agencies and large enterprises will contribute to a rapid increase in E5 gasoline consumption, which is still very low compared to the total gasoline consumption in Ho Chi Minh City.

On the other hand, existing stores/dealers are not yet actively participating in the distribution of E5 gasoline because it is a new product, consumers are not yet familiar with its use, and stores have to invest in converting their pumps specifically for E5 gasoline… Some businesses are concerned about reduced profits due to low E5 gasoline consumption and prolonged inventory leading to losses.

Mr. Dang Vinh Sang, General Director of Ho Chi Minh City Petroleum Company (Saigon Petro), stated that the distribution of two types of gasoline, Mogas 92 and E5 RON 92, has negatively impacted the business of gas stations. He added that if Ho Chi Minh City continues to distribute these two types of gasoline as it currently does, it will be difficult to develop the business of E5 bio-gasoline.

Mr. Le Xuan Trinh, Deputy General Director of Vietnam Oil Corporation (PVOil), also suggested that Ho Chi Minh City should have a clear distribution roadmap to promote the business of E5 gasoline, similar to provinces like Quang Ngai and Quang Nam, which have already issued documents requiring stores and distributors to switch to selling E5 bio-gasoline. If stores continue to sell both Mogas 92 and E5 RON 92 gasoline simultaneously, it will be difficult to develop the E5 gasoline business.

According to TBKTSG Online