Why is E5 bioethanol fuel selling poorly?

In managing gasoline prices, the Ministry of Industry and Trade has always requested that there be room to encourage consumers to use E5 gasoline. However, communication efforts in the past have not been successful in building consumer trust in using E5 gasoline.

Since 2018, E5 bioethanol fuel has been widely available nationwide, but consumption has been steadily declining.

This information was released at the Ministry of Industry and Trade's regular quarterly press conference for the fourth quarter of 2024 on the afternoon of January 7th. At the press conference, one of the topics that received attention from the press was the declining consumption of E5 gasoline.

Consumers are not yet confident in using E5 gasoline.

Regarding this issue, Ms. Nguyen Thuy Hien, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade), informed: In implementing Decision No. 53/2012/QD-TTg of the Prime Minister on the issuance of a roadmap for applying the blending ratio of biofuels with traditional fuels, the Ministry of Industry and Trade has issued a Directive to implement Resolution No. 53/2012/QD-TTg.

In this directive, the Ministry of Industry and Trade assigned tasks to its affiliated units and agencies, provincial departments of industry and trade, and petroleum businesses to organize the implementation. The Ministry of Industry and Trade has also issued numerous documents urging and directing petroleum distribution and distribution businesses and key petroleum suppliers to implement, conduct business, and distribute E5 gasoline.

Since 2018, E5 bioethanol fuel has been widely available nationwide, but consumption has been declining due to several reasons. Among these, Ms. Nguyen Thuy Hien cited three main reasons:

Firstly, the price difference between E5 gasoline and conventional gasoline is not significant, which does not encourage or attract consumers to use this type of gasoline.

Secondly, the communication efforts have not been effective enough to build consumer trust in using E5 gasoline.

Thirdly, with the current economic development, consumers have access to more modern means of transportation, leading them to use higher-quality gasoline.

Create opportunities to encourage people to use E5 gasoline.

Given the declining consumption of E5 gasoline, the Domestic Market Department advised the Minister of Industry and Trade, and the Ministry of Industry and Trade issued documents and directives to promote E5 gasoline consumption. Simultaneously, the Ministry of Industry and Trade assigned the Science and Technology Department, as the lead agency, to implement Decision 53/2012/QD-TTg of the Prime Minister, conducting a comprehensive review and assessment of the implementation of the Decision on the roadmap for applying the blending ratio of biofuels with traditional fuels, and then submitting a report to the Prime Minister for consideration.

Furthermore, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan stated that the Ministry of Industry and Trade has undertaken numerous measures to develop E5 bioethanol fuel. Even in managing fuel prices and supply and demand, the Ministry has consistently emphasized creating opportunities to encourage consumers to use E5 fuel.

In the fuel price adjustment on January 2, 2025, the price of E5 RON92 gasoline did not exceed 20,057 VND/liter and the price of RON 95-III gasoline did not exceed 20,746 VND/liter. Thus, the difference between these two products is nearly 700 VND/liter.

According to experts, E5 bioethanol fuel contains 5% by volume of bioethanol and 95% by volume of traditional gasoline. Currently, bioethanol in Vietnam is mainly produced from dried cassava chips. Bioethanol has been used in many countries around the world for many years. It is considered a solution for environmental protection and reducing dependence on fossil fuels.

Besides the environmental benefits, many studies have shown that using E5 bioethanol fuel also offers numerous advantages for vehicle engines. Furthermore, using E5 bioethanol fuel contributes to energy security, reducing dependence on imported fuel, curbing rising oil prices, and stabilizing the energy situation.

Source: https://baolangson.vn/vi-sao-xang-sinh-hoc-e5-e-hang-5034440.html