Selling E10 gasoline: Why are many private businesses still hesitant?

TPO - The petroleum market is showing the first signs of a transition to E10 bioethanol fuel. However, observations indicate that implementation is still uneven among major distributors, especially retail stores and private businesses.

Waiting for power supply, technical issues.

In many streets of Hanoi , signs advertising E10 gasoline are still quite rare. At a gas station of Indel Investment and Development Joint Stock Company (Ha Dong ward, Hanoi), the pumps mainly sell RON95-V and E5 RON92. A staff member said that the company has not yet implemented E10 due to an unstable blending source and is still awaiting a supply plan from the main distributor.

At the Mipecorp store on Nguyen Phong Sac Street, Cau Giay Ward, Hanoi, a sales employee said that the company expects to start selling E10 gasoline in early June after securing supplies and completing technical preparations.

According to observations by Tien Phong reporters, most private businesses are still in a "wait-and-see" state and implementing the plan cautiously. Some units said they have received notification about the conversion roadmap but cannot yet sell on a large scale due to dependence on ethanol sources, base gasoline for blending, and the progress of completing technical procedures.

A representative of a gasoline retail business in the Thanh Xuan area said that the supply of ethanol has not been stable recently, while fluctuating import prices have forced many businesses to recalculate their costs.

Many private gas stations are still hesitant to roll out E10 gasoline.

According to this source, large enterprises like Petrolimex and PVOIL have their own blending facilities, infrastructure, and supply sources, allowing for faster implementation. Private enterprises, however, still have to wait for blending supplies and further refine technical requirements, especially facing the initial investment pressure for tank systems, technology, and quality control.

"For businesses, if they launch a large-scale operation without a stable supply of goods, the operational pressure and costs will be enormous," the store owner shared.

Speaking with a reporter from Tien Phong newspaper, Ms. Nguyen Thuy Hien, Deputy Director of the Department of Domestic Market Management and Development, assessed that, based on market monitoring and feedback from key businesses, consumers are currently receiving E10 gasoline relatively positively.

However, Ms. Hien acknowledged that the rollout of E10 gasoline on the market is still mainly carried out by large-scale distributors, while many private businesses and other distributors are still implementing it rather cautiously.

According to Ms. Hien, the cause is not due to market sentiment or consumer reaction, but mainly stems from technical and procedural obstacles in the implementation process. Currently, some businesses are complaining that investing in their own testing laboratories would be very costly, while the actual need is not yet significant. These units are proposing to be allowed to rent testing laboratories instead of having to invest in a complete system from the outset to avoid waste.

"We are quite concerned about the progress of implementation at some private enterprises and are continuing to push for solutions to expedite the transformation process. Currently, the Department has submitted reports and proposals and is continuing to seek the Government's opinion to resolve obstacles for businesses," Ms. Hien said.

PVOIL and Petrolimex accelerate coverage expansion.

Speaking to a reporter from Tien Phong newspaper, Mr. Vu Tuyen Huan, Deputy Director of Petrolimex Hanoi, said that the company has now implemented the sale of E10 RON95-III gasoline at all its stores in Hanoi, in line with the government's policy of promoting biofuels.

PVOIL and Petrolimex are accelerating the expansion of E10 gasoline sales coverage.

According to Mr. Huan, Petrolimex Hanoi is currently only distributing E10 RON95-V (Euro V standard) fuel in the inner city area and is awaiting additional ethanol and blending supplies from the corporation to expand coverage. "We expect to have stock by the end of this week, and Petrolimex Hanoi will continue to expand coverage from the beginning of next week, completing the process within 2-3 days," Mr. Huan stated.

A representative from Petrolimex Hanoi stated that the biggest challenge currently lies in the ethanol supply and blending progress. However, the company believes that the transition to E10 is an inevitable trend as Vietnam promotes emission reduction and gradually replaces traditional gasoline.

"Currently, market feedback is quite stable, with no unusual issues observed. Many countries in the region have been using biofuels at higher blending rates than Vietnam, such as Thailand, which has been using E20 for a long time," Mr. Huan said.

According to a representative from the Vietnam Oil Corporation (PVOIL), approximately 600 gas stations have started selling E10 fuel, and this number continues to increase rapidly in recent days. By May 15th, the entire system of nearly 1,000 gas stations nationwide will have switched to E10.

“PVOIL has invested in and upgraded its infrastructure and perfected its technical processes; at the same time, the company uses base gasoline from Nghi Son Refinery and Petrochemical Company Limited and Binh Son Refinery and Petrochemical Joint Stock Company to blend E10. For ethanol, the company combines both domestic supply and imports from the US and Brazil to ensure a stable supply for the entire system,” a PVOIL representative shared.

Source: https://tienphong.vn/ban-xang-e10-vi-sao-nhieu-doanh-nghiep-tu-nhan-con-de-dat-post1842737.tpo