Converting E10 gasoline business from encouragement to mandatory standardization

Photo caption — Illustration photo: Tuan Anh/VNA

Recently, the Ministry of Industry and Trade issued Circular 50/2025/TT-BCT dated November 7, 2025, stipulating the roadmap for applying the blending ratio of biofuels with traditional fuels in Vietnam (Circular 50), creating a legal foundation and market confidence for entities in the value chain (blending, logistics, retail, engineering) to have a basis for long-term investment. Specifically, from June 1, 2026, unleaded gasoline (according to current national technical regulations) must be blended and prepared into E10 gasoline for use in gasoline engines nationwide, which can be considered a strategically significant shift from the policy of "encouragement" to "mandatory standardization".

Ms. Nguyen Thuy Hien, Deputy Director of the Department of Domestic Market Management and Development, Ministry of Industry and Trade, said that when Circular 50 was issued, the Ministry of Industry and Trade also urgently issued a communication plan and provided comprehensive information about E10 gasoline. As for businesses with complete facilities and infrastructure, they can switch from June 1, 2026.

“To implement Circular 50, the Ministry of Industry and Trade has submitted to the Government a Circular guiding the technical blending. In particular, the Ministry of Industry and Trade plays a leading role in guiding businesses to ensure the supply of gasoline and oil during implementation, supporting businesses in calculating prices, and energy development investment projects...”, Ms. Hien shared.

Regarding the conversion of E10 gasoline business, Associate Professor, Dr. Van Dinh Son Tho, Hanoi University of Science and Technology, said that in order to introduce a policy requiring the use of E10 gasoline, it is necessary to conduct a review and inventory to clearly classify how many vehicles are compatible with E5 gasoline, vehicles compatible with E10 gasoline, and unsuitable vehicles. On this basis, State management agencies and localities will coordinate with the business community to research and develop a conversion plan based on policy mechanism regulations.

According to the analysis of the Chairman of the Vietnam Petroleum Association, Bui Ngoc Bao, one of the important things is to clearly communicate information about E5 or E10 gasoline, especially technical standards. Consumers increasingly tend to switch to other product lines of better quality, more environmentally friendly, and in fact, many countries in the world have switched to using E10 bio-fuel.

Statistics from many published research results show that reducing E10 gasoline lifecycle emissions helps cut about 3-7% CO₂, limit toxic gases, and make the air cleaner in line with the Net Zero target. If widely used, E10 gasoline is estimated to replace the equivalent of about 1 million tons of gasoline/year, increasing proactive energy security and contributing to reducing gasoline imports.

According to actual records in Ho Chi Minh City, the consumption reaches about 7,000 m3 of gasoline/day (2.5 million tons of gasoline/year) to provide fuel for 8.5 million motorbikes, 1 million cars of all kinds, 2,200 buses, 13,300 taxis... Currently, Ho Chi Minh City has about 14 million people, of which 10 million people use personal vehicles, so it is also one of the top priority cities for biofuel deployment.

In recent times, departments such as the Department of Science and Technology of Ho Chi Minh City have also been coordinating to strengthen communication to help consumers understand correctly and feel secure in using E10 gasoline. The Department of Industry and Trade of Ho Chi Minh City, along with the business community, has been preparing for the mass deployment of E10 gasoline products, so in the near future, they will step up communication to help consumers understand and use it.

On the business side, immediately after Circular 50 was issued, they urgently developed and implemented a plan to upgrade the E10 gasoline blending system on the basis of existing E5 gasoline blending facilities. Investment work, conversion of tanks, equipment and automatic control systems are being carried out simultaneously and are expected to be completed before December 31, 2025, as well as ensuring readiness to blend E10 gasoline throughout the system.

However, Mr. Nguyen Xuan Thang, Director of Hai Au Phat Company Limited, said that the company wants the State to give a specific roadmap for applying E10 gasoline, from 1 to 5 years. Typically, in 2026, the E10 gasoline business rate will only be applied at 20-25% and mainly converted from units that have traded E5 such as PVOIL, Petrolimex... In the period of 2027, the business rate will be applied at 25-35%, to encourage units that have traded E5 gasoline such as PVOIL, Petrolimex... to support and convert E10 business for franchisees.

From 2028 to 2030, the E10 gasoline trading rate can be increased to 100% and mineral gasoline trading can be stopped from 2030. At the same time, relevant ministries and branches should issue warnings and recommendations on vehicle models/generations that are not compatible to use E10 gasoline.

Other businesses pointed out that Vietnam currently has a number of fuel ethanol factories with a total designed capacity of over 500 million liters/year, enough to meet about 70% of the E10 blending demand in the initial stage. However, in order for E10 gasoline to not be a test but a strategic product because of its low cost and high readiness when both necessary and sufficient conditions are met to be brought to the market, another important issue is planning the raw material area.

Another issue that needs to be considered is that most of the petroleum wholesale enterprises must calculate the full cost and ensure the profit for the petroleum retail enterprises from 10-15% compared to the retail price. Because in reality, the profit through the form of discount (commission) 3-7% as present is very difficult for the retail enterprises.

Faced with this situation, the business community recommends that the Ministry soon have framework policies to support legal, technical, financial... to create more favorable conditions for petroleum businesses to easily switch to E10 gasoline business. At the same time, the State promotes a coordination mechanism between the State, scientists, farmers... to create quality products to help ensure good raw material areas for E10 gasoline products; and manufacturers have access to quality domestic raw materials.

Comment (0)