How is the price of E10 gasoline determined?

From June 1st, E10 gasoline officially replaced traditional gasoline nationwide. Representatives from the Ministry of Industry and Trade have commented on the factors determining the selling price of this new fuel.

The price of E10 gasoline is determined by the base price of gasoline, ethanol, production costs, logistics, distribution, profit, and taxes. Photo: Hoai Bao .

At the seminar "Is using E10 gasoline a cause for concern?" organized by the Government's Electronic Information Portal, Mr. Dao Duy Anh - Deputy Director of the Department of Innovation, Green Transformation and Industrial Promotion ( Ministry of Industry and Trade ) - explained the reasons why Vietnam chose to completely switch to E10 bio-gasoline from June 1st instead of maintaining parallel use with conventional gasoline like some other countries.

Why can't fossil fuels and biofuels be used in parallel?

Specifically, Mr. Dao Duy Anh stated that the process of developing and implementing the biofuel roadmap according to Circular 50/2025/TT-BCT has been carefully studied by the Ministry of Industry and Trade based on a comprehensive assessment of actual conditions. The surveyed areas include supply sources, storage infrastructure, blending, transportation, and the distribution network to consumers.

The goal of the biofuel program is not just to use a new type of fuel, but also to protect the environment, reduce emissions, increase self-sufficiency, and contribute to ensuring national energy security.

"Based on all the information we have gathered and assessed, we believe that the time is ripe to implement a very correct policy, concretized by resolutions of the Politburo , decisions of the Prime Minister, and the determination of ministries and agencies," he said.

Mr. Dao Duy Anh - Deputy Director of the Department of Innovation, Green Transformation and Industrial Promotion (Ministry of Industry and Trade). Photo: VGP/Giang Thanh.

A representative from the Ministry of Industry and Trade stated that, given the complete survey and assessment results, there is "no reason" to continue maintaining and circulating fossil fuels. According to him, continuing to use fossil fuels would make it difficult to achieve the goal of reducing dependence on fossil fuels and enhancing energy security self-reliance.

"That is why the Ministry of Industry and Trade, as well as the Government, are determined to make the transformation thorough in order to achieve the goals," said Mr. Dao Duy Anh.

Regarding the issue of E10 gasoline prices, a topic receiving much attention from consumers, Mr. Dao Duy Anh stated that bio-gasoline, like other goods and fuels on the market, has its price determined by many constituent factors.

According to him, the price of E10 gasoline is calculated based on the price of input materials such as base gasoline and ethanol, along with production costs, logistics costs, sales costs, profit margins of manufacturers and distributors, and related taxes.

He stated that the price of raw materials is directly affected by developments in the global market.

"We live in an open world, where all raw material prices follow global price levels. Therefore, if world prices go up, our input costs also go up, and if they go down, our costs also decrease," he said, adding that the price of biofuel is determined by adding up production costs, business costs, profit, and taxes.

How popular has E10 gasoline become worldwide?

Referring to international experience in the use of biofuels, Mr. Do Van Tuan, Chairman of the Vietnam Biofuel Association, said that currently about 65 countries and territories are using bioethanol, corresponding to about 97% of the world's population.

He cited the example of the US, where the usage rate of E10 gasoline is approximately 98%, while only about 2% is conventional gasoline for certain areas that still maintain separate refueling stations. In Europe, E10 has become widely used. Many Asian countries such as China, India, the Philippines, and Thailand have also deployed this fuel. Australia is using E10, and Japan, despite its cautious approach, aims to use E10 by 2027.

Mr. Do Van Tuan stated that Vietnam does not need to go through the E10 testing phase like many other countries. Photo: VGP/Giang Thanh.

"Therefore, in the regions and countries where it is widely used around the world, E10 has mostly become the standard gasoline," Mr. Tuan stated.

According to the Chairman of the Vietnam Biofuel Association, one of Vietnam's advantages in deploying E10 is that it does not have to go through a testing phase like many other countries.

"E10 has been running in the US since 1985. So we're not a testing ground; we're immediately using a product that the world has already tested," he said.

He also stated that petroleum products have very high international standards. Therefore, E10 gasoline in Vietnam and other countries basically have the same standards, differing only in certain additives.

"Therefore, we don't waste time on the transition process. And thus, we don't waste time reassessing the effectiveness of E10 gasoline in the overall picture of usage and economics," said Mr. Do Van Tuan.

Source: https://znews.vn/gia-xang-e10-duoc-xac-dinh-nhu-the-nao-post1656057.html