Proposal to reduce E10 gasoline tax to attract consumers.

The Ministry of Industry and Trade has proposed a pricing mechanism, tax incentives, and solutions to infrastructure obstacles in order to simultaneously roll out E10 bioethanol fuel nationwide starting June 1st.

From June 1st, E10 RON 95-III gasoline will be used to announce the base price. Photo: TH

Regarding the selling price of this product, the Ministry of Industry and Trade proposes allowing this agency and the Ministry of Finance to determine the constituent elements in the formula for the base price of gasoline and announce the base price to manage gasoline prices for E10 gasoline from June 1st.

Accordingly, from June 1st, E10 RON 95-III gasoline will be used to announce the base price. Before September 1st, the Ministry of Industry and Trade will announce the most consumed biofuel product to apply the base price announcement mechanism.

For the base price of E10 gasoline, the Ministry of Industry and Trade will determine world gasoline prices based on the average price of RON 95 gasoline on the international market between two price adjustment periods. The price of fuel ethanol will be determined by the Ministry of Finance to be included in the price calculation formula.

Costs such as import, transportation, premium, standard profit margin, and business expenses are applied according to the current mechanism for RON 95 and E5 RON 92 gasoline. Once complete cost data is available, the Ministry of Finance will coordinate with the Ministry of Industry and Trade to compile, determine, and announce the base price of E10 gasoline.

Wholesale petroleum traders must report fully, promptly, and accurately to the Ministry of Finance and the Ministry of Industry and Trade the data used to calculate the base price of E10 gasoline, including the price of ethanol, blending ratio, transportation costs, storage costs, losses, and other reasonable expenses; and are legally responsible for the content of the reports.

Wholesale petroleum traders are permitted to hire qualified units to test and inspect the quality of petroleum products according to national technical standards, in order to complete the application for a Certificate of Registration for petroleum blending facilities.

Another noteworthy point is that the draft proposal suggests the Government assign the Ministry of Finance to study adjustments to the special consumption tax and environmental protection tax in order to create a sufficiently attractive price difference between biofuels and conventional gasoline.

Simultaneously, the study proposes policies aimed at encouraging the development of the biofuel industry and the stable, long-term use of bioethanol.

According to the draft, the Ministry of Industry and Trade will coordinate the supply of ethanol and base gasoline, and monitor the phased implementation of E10 gasoline.

According to the draft, ministries, sectors, and localities will coordinate the implementation of the E10 gasoline roadmap, in which the Ministry of Construction will review the blending infrastructure standards, and the Ministry of Agriculture and Environment will plan the raw material areas and announce the emission reduction index.

Provincial and city People's Committees should support businesses in upgrading infrastructure and strengthening quality control of biofuels. Businesses involved in the petroleum trade, biofuel production, and import must proactively secure supply sources, upgrade blending and distribution systems, and complete the plan to switch to selling E10 gasoline before June 1st.

Source: https://hanoimoi.vn/de-xuat-giam-thue-xang-e10-de-hut-nguoi-tieu-dung-750810.html