Proposed Policy Research to Support Retail Businesses in the Distribution of E5 and E10 Biofuel

Biofuel, according to businesses, is prone to rapid degradation and can potentially damage storage tanks and pumping equipment.

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At the seminar titled “Using E10 Biofuel – Sustainable Development,” organized by the Sai Gon Giai Phong newspaper on November 25, Ms. Nguyen Thuy Hien, Deputy Director of the Domestic Market Management and Development Department (Ministry of Industry and Trade), announced that from June 1, 2026, biofuels E5 and E10 will completely replace mineral gasoline in the market.

According to Ms. Hien, E5 gasoline has been widely used since 2017, and to date, no official complaints related to its quality have been recorded. Some vehicle fires have occurred, but there is no clear evidence linking them to biofuel.

Ms. Hien affirmed that when implementing E10 gasoline, if issues arise, authorities will review and adjust solutions accordingly to ensure consumer rights.

Ms. Nguyen Thuy Hien, Deputy Director of the Domestic Market Management and Development Department (Ministry of Industry and Trade)

Meanwhile, Mr. Bui Ngoc Bao, Chairman of the Vietnam Petroleum Association, stated that during the initial phase of E5 gasoline introduction, consumption reached 40%. However, it gradually decreased due to ineffective communication efforts.

According to Mr. Bao, the main reason is that consumer habits currently favor high-quality fuels, while E5 gasoline is blended from RON 92 base gasoline, making it less appealing. With E10 gasoline, using RON 95 base gasoline is expected to create a difference and gain market support.

Mr. Bui Ngoc Bao, Chairman of the Vietnam Petroleum Association

However, many retail petroleum businesses still express concerns. Mr. Nguyen Xuan Thang, Director of Hai Au Phat Petroleum Company, shared that his company previously sold E5 gasoline but faced difficulties due to its hygroscopic nature, causing stratification and damage to storage tanks and pumps, leading to losses.

Mr. Thang mentioned that with just 10,000 liters of E5 gasoline in storage, the company recorded a loss of 120–150 liters; if the stock remained unsold for 7–10 days, the loss could increase by 200–280 liters.

Based on this reality, Mr. Thang proposed that the government study support policies to help businesses upgrade storage tanks, pumps, and technology suitable for biofuel. The support level, according to him, should range from 2–5 billion VND for tier 1 businesses, 1–3 billion VND for tier 2 businesses, and approximately 500 million to 1 billion VND for tier 3 businesses.

This is considered a necessary condition for businesses to invest confidently and ensure a smooth and sustainable transition to biofuel.

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