Mandatory use of E10 gasoline from January 1, 2026 - Final episode: There will be many attractive support policies

Deputy Prime Minister Bui Thanh Son has just agreed in principle with the proposal of the Ministry of Industry and Trade regarding the new roadmap for applying biofuels, expected from 2026, and requested to soon complete the plan to submit to the Government in July 2025.

After 10 years of being shelved, Dung Quat Biofuel Plant now has a roadmap to restart. Production is expected to start in November - Photo: TRAN MAI

Previously, the Ministry of Industry and Trade said it had submitted a document to the Prime Minister requesting approval to develop a decision to replace Prime Minister's Decision 53 on the roadmap for applying the biofuel blending ratio, with the plan to use E10 biofuel from January 1, 2026.

Need a pilot roadmap before expansion?

According to Tuoi Tre newspaper, it is expected that in July and August, the Ministry of Industry and Trade will have a draft decision of the Prime Minister to replace Decision 53, and consult with ministries, localities, associations, experts... on implementing the new roadmap from the beginning of 2026.

However, Mr. Van Tan Phung, Chairman of Dong Nai Petroleum Association, said that from previous experience in implementing consumption and distribution of E5RON92 gasoline, it is necessary to have a roadmap suitable to actual capacity and market developments.

Because before E5RON92 gasoline was put into use, the company invested in a series of tanks and gas pumps for this product. However, the consumption of bio-fuel is decreasing, business is not effective, the company has to stop selling this product.

"There needs to be a suitable pilot roadmap. Once approved by society, it will be widely deployed, linked with policies to support businesses in the transformation," Mr. Phung proposed.

Meanwhile, a representative of the Vietnam National Petroleum Group (Petrolimex) said that in order to implement the consumption of E10 gasoline by 2026, it is necessary to study and have an attractive price support policy to encourage and promote consumers to use biofuel. In addition, it is necessary to strengthen communication and propaganda to help consumers understand correctly the impact of biofuel on engines.

Ministries and sectors also need to work with the Vietnam Automobile Manufacturers Association to organize communications for biofuels. "The government and relevant ministries and sectors should have mechanisms, business policies, and tax policies to support and encourage the production, use, and trading of biofuels," he proposed.

Mr. Bui Ngoc Bao - Chairman of the Vietnam Petroleum Association - suggested that the implementation of biofuel use applied synchronously nationwide needs to have a specific and clear roadmap so that businesses have at least 6 months to prepare.

It is necessary to soon announce the draft decision to replace Decision 53 of the Prime Minister to collect public opinions, focusing on amending a number of inappropriate regulations related to the petroleum market and product quality, on petroleum business management, standards for E10 gasoline...

There will be policies to encourage the production and consumption of biofuel.

According to Mr. Bao, when ethanol is added, the oxygen content in E10 gasoline is higher than the permitted level according to QCVN. "Therefore, the standards should be adjusted to match the base gasoline supply on the market and meet quality requirements," Mr. Bao suggested.

Many businesses also believe that the application of the biofuel use roadmap should be carried out on the basis of only circulating high-quality biofuel and mineral gasoline products with very expensive prices such as RON95 level 5, RON97 and RON98, and stopping the circulation of E5RON92 and RON95 gasoline products at levels 3 and 4.

"There must be regulations to stop the circulation of low-quality gasoline, to avoid repeating the previous scenario when E5RON92 gasoline was introduced to the market, but RON95 products were still maintained with a small price difference, so users prioritize choosing RON95 products over biofuel," said a business.

In addition, according to businesses, there needs to be a pricing mechanism and management of gasoline prices according to market developments, a formula for calculating gasoline prices that closely follows reality and has State support in terms of taxes, fees as well as investment, upgrading infrastructure, storage tanks, pumping stations, mixing facilities, testing... to help businesses convert more effectively.

Talking to us, a leader of the Ministry of Industry and Trade said that they are completing the draft to replace Decision 53, which includes additional preferential and support policies for businesses producing, blending, distributing and consumers of biofuel.

Specifically, it will propose policies to reduce special consumption tax, VAT, environmental protection fees... Review and amend technical standards and regulations for gasoline base to blend with biofuels and vehicles to ensure compatibility and safety.

In addition, we will continue to invest in upgrading and expanding the ethanol production plant in a modern direction, stabilizing the supply of fuel ethanol meeting E100 standards. We will build and complete the system of blending facilities at the main petroleum depots in key economic regions (North, Central, South).

"There will be policies to encourage the development of energy crop raw material areas (cassava, sugarcane, corn...) associated with ethanol factories, promoting the application of ethanol production technology from agricultural by-products such as straw, bagasse... to reduce pressure on food competition," he said.

E5 biofuel is sold at a gas station in Go Vap ward, Ho Chi Minh City - Photo: TRI DUC

* Mr. DO VAN TUAN (Chairman of Vietnam Biofuel Association):

Ethanol producers are ready

Through reference to the use of biofuel in European countries, the US, China, Thailand, India..., it shows that the quality of biofuel is completely guaranteed, even without mentioning. In fact, Petrolimex has distributed A92E5 gasoline since 2017 but has not recorded any complaints about quality issues affecting vehicles. The Ministry of Industry and Trade also confirmed this information.

Meanwhile, domestic ethanol factories are ready to participate in this program, with the ability to meet about 40% of blending needs, the remaining 60% can be imported, so there is no need to worry too much about the ability to produce and supply ethanol.

With about 45% market share, Petrolimex is ready with infrastructure to blend ethanol and mineral gasoline. Two enterprises with large market shares, PVOil and Mipec, are also preparing for blending. These three enterprises account for more than 75% market share, the remaining 25% is not too worrying.

Among the main traders, only 4 enterprises do not have a biofuel blending system. These enterprises account for a small market share, so they will not have much impact on the supply.

Not to mention the two Dung Quat and Nghi Son refineries are also expected to sell biofuel. Therefore, businesses that need to buy E10 can buy from the factories without investing in a blending system. However, in my opinion, if the implementation is synchronized with the E10 product, not maintaining mineral gasoline will be more effective.

In fact, E10 gasoline has been sold by Petrolimex at some stores since June 1 in Ho Chi Minh City and A95E10 gasoline has been accepted by the market as usual for A95 gasoline. It is expected that from August 1, this corporation will expand to the entire city.

NGOC AN

Source: https://tuoitre.vn/bat-buoc-dung-xang-e10-tu-ngay-1-1-2026-ky-cuoi-se-co-nhieu-chinh-sach-ho-tro-hap-dan-20250717235908132.htm