Why is E10 bioethanol fuel cheaper than conventional gasoline?

E10 gasoline officially went on sale nationwide from June 1st, but many major companies had already started selling it widely since mid-May, at a price cheaper than RON95 mineral gasoline.

Petrolimex, the Vietnam National Petroleum Corporation, announced the selling price of E10 RON 95-V gasoline at 24,630 VND/liter (Region 1) and 25,120 VND/liter, while PVOIL, the Vietnam Oil Corporation, listed the price of E10 RON 95-III gasoline at 23,730 VND/liter.

Therefore, the price of E10 gasoline is essentially lower than the price of RON95-III and RON95-V mineral gasoline. At Petrolimex, the price of RON95-III gasoline is 24,350 VND/liter (Region 1) - 24,830 VND/liter (Region 2). The corresponding price of RON95-V is 25,250 VND/liter - 25,750 VND/liter. At PVOIL, the price of RON95-III gasoline is 24,350 VND/liter.

Explaining why E10 gasoline is cheaper than conventional gasoline, Ms. Nguyen Thuy Hien, Deputy Director of the Domestic Market Management Department ( Ministry of Industry and Trade ), said: “The main reason is that the input costs for blending E10 gasoline are lower than the import price of conventional gasoline. E10 is a type of bio-gasoline blended with 10% fuel ethanol (bioethanol) and 90% traditional conventional gasoline. Because the input costs are low, businesses can sell E10 gasoline at a lower price.”

According to Ms. Hien, businesses are currently adjusting the price of E10 gasoline based on their investment costs, while also using the government's pricing formula. Later, when E10 bio-gasoline is widely available, the government will issue the selling price.

"However, with lower input costs compared to conventional gasoline, the price of E10 gasoline will certainly be cheaper than traditional gasoline," Ms. Hien added.

E10 gasoline is currently sold at a lower price than conventional gasoline. (Illustrative image: Minh Duc).

E10 bioethanol fuel will be sold nationwide from June 1st, replacing traditional gasoline. The Department of Domestic Market Management and Development (Ministry of Industry and Trade) has issued a document to the Departments of Industry and Trade in provinces and cities regarding the monitoring and inspection of the implementation of E10 bioethanol fuel according to the prescribed roadmap.

According to the Department of Domestic Market Management and Development, the sale of E10 bioethanol needs to be implemented synchronously and effectively, avoiding delays or disruptions in supply that could affect the petroleum market.

From now until May 31st, the Ministry of Industry and Trade requests that provincial Departments of Industry and Trade strengthen communication and raise awareness among petroleum businesses regarding compliance with the roadmap for transitioning to E10 gasoline. Simultaneously, they should widely disseminate information about the safety and benefits of E10 bio-gasoline to gain consumer consensus in their respective areas.

In addition, local authorities are reminding and closely monitoring gasoline retail outlets to promptly complete technical infrastructure such as tanks and pumps to switch to selling E10 bioethanol fuel according to the prescribed schedule.

Starting June 1st, market management forces will coordinate with other functional forces to strengthen supervision and inspection of retail gasoline stations in the area. The Department of Domestic Market Management and Development requires strict handling of violations such as selling gasoline of the wrong type according to the roadmap; hoarding goods to create supply shortages; arbitrarily stopping sales without justifiable reasons or using ambiguous labeling on gasoline pumps; arbitrarily increasing prices unreasonably; and other violations of the law.

The official document also clearly states that market management forces at all levels and officials in charge of the area will be held responsible if retail gasoline stations fail to comply with the roadmap for switching to E10 gasoline; or if serious violations occur or hotspots of fraud form, causing instability in the gasoline market in their managed area without timely detection and handling.

Previously, from May 15th, the petrol station system of Vietnam Petroleum Corporation (PVOIL) stopped selling RON95 gasoline and began selling E10 bioethanol gasoline on a large scale. Meanwhile, Vietnam Petroleum Corporation (Petrolimex) also completed the conversion to selling E10 gasoline and stopped selling mineral gasoline from today, May 20th.

Both of these major companies have been conducting pilot sales of E10 gasoline in many localities since August 2025 and have not recorded any incidents or complaints from consumers regarding the product's quality.

PHAM DUY

Source: https://vtcnews.vn/vi-sao-gia-xang-sinh-hoc-e10-re-hon-xang-khoang-ar1019047.html