Expected to sell only E10 gasoline from 2026, how is the Ministry of Industry and Trade preparing?

(Dan Tri) - The Ministry of Industry and Trade plans to supply E10 gasoline nationwide from January 1, 2026. However, to completely replace mineral gasoline, Vietnam needs to overcome major challenges in technology, market and policy.

At a workshop on biofuel development in the new era organized by the Ministry of Industry and Trade on August 27th, Mr. Nguyen Hong Dien, Minister of Industry and Trade, stated that E10 gasoline has been piloted in several major cities such as Hanoi, Ho Chi Minh City, and Hai Phong, and has initially received positive interest from consumers.

Leading enterprises such as Petrolimex , PV Oil, Saigon Petro… have prepared the necessary blending and distribution infrastructure, ensuring a synchronized supply of E10 gasoline nationwide from January 1, 2026.

However, the Minister stated that to realize the goal of developing biofuels to completely replace gasoline, significant challenges in technology, policy, and market must be overcome. At the same time, domestic biofuel production capacity is limited, currently meeting only about 40% of demand, with the remainder having to be imported from the US, Brazil, and other international partners.

This creates an urgent need to expand raw material areas, increase ethanol production capacity, and build strong and feasible mechanisms and policies to encourage the production, import, and strategic stockpiling of biofuels.

Minister Nguyen Hong Dien affirmed that biofuels are a strategic solution for a green economy (Photo: Can Dung).

According to Dr. Dao Duy Anh, Deputy Director of the Department of Innovation, Green Transformation and Industrial Promotion (Ministry of Industry and Trade), biofuels (E5 bioethanol) have been on the market since 2018.

However, to date, the consumption of E5 RON92 gasoline has decreased sharply, accounting for only 21% of the market share (in 2024). In some provinces and cities such as Dong Nai, Ho Chi Minh City, and Hanoi, E5 RON 92 sales account for less than 20% of total gasoline consumption.

"One of the biggest challenges in developing and consuming biofuels today is consumer sentiment. Many people are still hesitant about the quality of this type of fuel, especially when used in modern vehicles, motorcycles, and high-end cars," he observed.

In addition, Mr. Dao Duy Anh argued that the price difference between E5 RON92 and RON 95 gasoline only ranges from 400-800 VND/liter, a reduction that is not attractive enough to encourage people to switch to using it.

In terms of policy, the financial mechanisms, tax incentives, and credit support for biofuels are still limited and have not created strong incentives for businesses and consumers...

"In particular, to date there has been no widespread, unified communication campaign, leading consumers to misunderstand the engine compatibility and safety of E5 and E10," a leader of the Department of Innovation, Green Transformation and Industrial Promotion observed.

The two major domestic fuel companies have started a pilot program selling E10 gasoline since August 1st (Photo: Thanh Thuong).

Gabriel Ho from the Global Green Fuels Centre believes that Vietnam's fuel supply chain is at a crucial transition stage as the government prepares to switch from E5 gasoline (5% ethanol) to E10 gasoline (10% ethanol) nationwide.

Therefore, ensuring that the distribution infrastructure can handle large-scale ethanol imports and blending is crucial for the successful deployment of E10 gasoline.

This transition requires assessing and upgrading ports, port terminals, and storage facilities throughout the North, Central, and South regions to prepare for ethanol deployment. Both state-owned networks (Petrolimex, PV Oil) and private facilities play a crucial role in the import, storage, and blending of ethanol.

From the perspective of the implementing enterprise, Mr. Nguyen Quang Dung - Deputy General Director of Petrolimex - said that during the pilot sale of E10 gasoline, the company has not received any feedback from consumers regarding the quality of E10 gasoline.

Mr. Dung proposed regulating the environmental protection tax rate on each liter of bioethanol sold. In addition, he suggested adjusting the tax rate on base gasoline used for blending bioethanol to 7%.

"I propose that the inter-ministerial committee develop a plan to calculate and issue cost norms for E10 gasoline, ensuring that all costs are fully reflected and that it encourages gasoline traders to participate in the production and sale of E10 gasoline," he suggested.

Source: https://dantri.com.vn/kinh-doanh/du-kien-chi-ban-xang-e10-tu-2026-bo-cong-thuong-chuan-bi-ra-sao-20250827114554446.htm