E10 gasoline may be sold ahead of schedule.
Speaking to Thanh Nien newspaper, many people said they are ready to buy E10 bioethanol fuel because "sooner or later, the market will only sell this type." On the afternoon of March 24, Ms. Bui Thien Trang (Tan Hoa Ward, Ho Chi Minh City) said she had just filled her family car with 1 million VND worth of E10 fuel at a gas station on Ly Thuong Kiet Street. "The price of RON95 gasoline has increased too quickly. Filling the tank made me realize the huge difference in price compared to last month. E10 gasoline is at least 2,000 VND/liter cheaper than regular gasoline. On the other hand, sooner or later the market will only sell E10 and E5 gasoline, so I want to try it first to see if the engine reacts well. My family car is driven frequently, and we often drive on highways, so so far I find it fine."
Similarly, Ms. Hong Hanh (An Hoi Tay Ward, Ho Chi Minh City), who has been using E10 gasoline for her motorbike since the end of last year, said: "The most difficult thing is that not all gas stations sell E10, so I've filled up with E10 one time and RON95 the next. So far, I find that my motorbike runs normally, and I haven't noticed any difference or sudden engine stalling as some of the previous 'warnings' suggested."
The government has proposed accelerating the transition to E10 gasoline by April to reduce dependence on imported mineral gasoline.
PHOTO: NHAT THINH
In fact, many people who were "trying it out" have now switched to "full-term use" of E10 gasoline amidst rapidly rising fuel prices and the government's upcoming deadline for converting all conventional gasoline to biofuel. Recently, in Prime Minister's Directive 09 on strengthening energy saving, promoting energy transition, and developing electric vehicles, the Prime Minister assigned the Ministry of Industry and Trade to promote the use of E10 biofuel. Specifically, the Ministry of Industry and Trade is tasked with reviewing the conditions to soon implement the roadmap for converting to E10 biofuel in April of this year to contribute to a 10% reduction in conventional gasoline consumption, easing the pressure of rising gasoline prices in the context of sharply increasing conventional gasoline prices due to conflicts in the Middle East.
E10 gasoline is cheaper, but people are still hesitant: The biggest fear isn't the price.
Consumers are mentally prepared for the transition, but what about gasoline businesses? Vietnam National Petroleum Group ( Petrolimex ) says it is urgently preparing the necessary technical and technological conditions, proactively securing ethanol and standard-compliant base gasoline sources to serve E10 blending. Petrolimex currently has 7 blending facilities nationwide ready to blend E10 gasoline. In addition, its network of over 2,800 gas stations has proactively cleaned storage tanks, prepared the necessary infrastructure, and developed a transition roadmap.
"The corporation hopes to roll out the sale of E10 gasoline throughout the entire Petrolimex system to completely replace conventional gasoline ahead of schedule. In addition to preparing the infrastructure of storage tanks and retail outlets, Petrolimex has also sent delegations of officials to study the experiences of several other countries to research business organization models, transportation, and quality assurance of E10 gasoline when supplying it to the market," a Petrolimex representative said.
Similarly, Vietnam Oil Corporation (PVOil), which also conducted a pilot sale of E10 gasoline at some gas stations in the north, announced that it has completed upgrading its blending and storage systems at 13 key depots nationwide. This includes improving storage tanks, blending equipment, and updating technology to meet the technical standards and legal requirements of E10 gasoline. With a retail network of nearly 900 gas stations, a nationwide network of depots and ports, and 10 years of experience in blending E5 RON92 bio-gasoline, the company believes this is a significant advantage that will enable it to conduct E10 gasoline sales ahead of schedule. PVOil stated that it is ready to process and blend E10 gasoline for other key businesses, affirming its leading role in ensuring a stable supply for the market.
Remove minor bottlenecks related to taxes, costs, etc.
To alleviate pressure on gasoline prices, the Ministry of Finance has proposed a 50% reduction in the environmental protection tax on gasoline, but the special consumption tax has not been addressed. Recently, a representative of the Vietnam Petroleum Association also suggested that the current special consumption tax on mineral gasoline is 10%, but for the volume used to blend E10 bioethanol, it should be reduced to 7%. Furthermore, Mr. Bui Ngoc Bao, Chairman of the Vietnam Petroleum Association, believes that more stable and long-term policies are needed for gasoline imports and recommends extending the import tax exemption period for gasoline, not just until the end of April as it is currently. Regarding the fuel source for E10 gasoline, the association also proposed considering the abolition of the contractor tax on gasoline stored in bonded warehouses, as this tax could reduce the attractiveness of the storage system in Vietnam. If this bottleneck is removed, Vietnam could potentially establish large ethanol storage facilities. In that case, businesses blending E10 only need to purchase goods from domestic bonded warehouses, reducing storage pressure, lowering financial costs, and reducing prices.
Blending just 10% of the 26 million cubic meters/tons of petroleum products annually would help replace a significant amount of fossil fuels. In the future, a higher percentage, such as E15 or E20, could be achieved, further exacerbating the reduction in dependence on imported petroleum products. For E10 biofuel to develop to its full potential, the key factor lies in policy mechanisms, especially tax and cost policies. Removing current barriers is expected to create a crucial impetus, helping the biofuel market operate efficiently, thereby contributing to energy security and promoting the green transition of the economy.
Mr. Bui Ngoc Bao
Representing the retail business community, Mr. Giang Chan Tay, Director of Boi Ngoc One-Member Limited Company (Vinh Long), said that for businesses that previously sold E5 gasoline, switching to E10 gasoline is not too complicated. In particular, infrastructure such as tanks and pumps can basically meet the requirements after cleaning and adjusting them accordingly. Businesses only need to upgrade their infrastructure and make calculations to comply with technical standards and safety requirements. In light of this major policy, businesses are also preparing for implementation.
"The policy of developing biofuels is correct and in line with global trends. For the transition to be effective, a clear and strong policy framework is needed, along with incentives and risk-sharing mechanisms, to help businesses invest confidently and maintain a stable and sustainable distribution system. Therefore, when implementing the mass sale of this type of gasoline, the Ministry of Industry and Trade and the Ministry of Finance need to coordinate in researching and determining a reasonable loss rate to include in the cost structure. This is very important. Because when calculating the base price, there needs to be a mechanism to compensate for this loss. By calculating this rate scientifically and reasonably, gasoline businesses will not suffer losses during the transition," Mr. Giang Chan Tay analyzed and affirmed that with coordination, agreement, and understanding between managers and businesses, along with practical support policies, the implementation of E10 gasoline - a major government policy - will certainly achieve positive results, especially contributing significantly to ensuring safety. Energy security, green transformation of the economy.
Source: https://thanhnien.vn/chay-dua-dua-xang-sinh-hoc-e10-ra-thi-truong-185260324220226907.htm
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