E5 bio-fuel will replace A92 petrol by June 2017 as many localities in the country are using the bio-fuel product, the Ministry of Industry and Trade (MoIT) said.

Since the beginning of this year, petrol stations in eight cities and provinces including Ha Noi, Hai Phong, Quang Nam, Quang Ngai, and Da Nang, in addition to HCM City, Can Tho and Ba Ria-Vung Tau, are already required to sell E5 bio-fuel and gradually replace the A92 variant. Other localities have to ensure that more than half of the petrol stations are selling E5 bio-fuel.

E5 is a mixer of A92 petrol (95 per cent) and bio-fuel Ethanol (5 per cent). Tests by the Directorate for Standards, Metrology and Quality under the Ministry of Science and Technology showed that local traders have ensured E5 quality. Up to now, there has been no complaint from consumers about the quality of E5 fuel.

The Tung Lam Joint Stock Company has been the major ethanol supply for E5 bio-fuel production from its two plants with total capacity of 150,000 tonnes a year. The capacity would be enough to produce 3 million tonnes of E5 bio-fuel a year.

A representative of PetroVietnam Oil Corporation (PV Oil) said the corporation had bought E5 directly from Dung Quat Oil Refinery for consumption in the central region. It had also produced E5 to supply to the remaining areas.

PV Oil has been active in ensuring E5 supply for its distribution nationwide.

Meanwhile, Viet Nam National Petroleum Group (Petrolimex) has also ensured two E5 supply lines from its own plants and the Dung Quat Oil Refinery.

The E5 supply, therefore, has been adequate with regard to local demand with regard to the total replacement of A92 petrol.

However, the MoIT’s Department of Science and Technology said the price of E5 had not been attractive enough to draw customers despite abundant supply.

The price of E5 is VND16,220 (US$0.7) per litre which is VND150 lower than A92.

Phan The Rue, chairman of the Viet Nam Petroleum Association, said the government should have policies in place to ensure that the E5 selling price is VND1,000 per litre lower than that of A92 to encourage people to use the bio-fuel product.

The government should support businesses in building E5 mixture plants as well as building E5 bio-fuel stations, Rue suggested.

A trader said that the current infrastructure, storage system and transport did not meet the requirements of E5 development, making fuel consumption difficult.

He said that E5 trading was in the hands of some wholesalers and distributors. Agents and retailers had not taken any drastic measures to replace A92 with E5.

Statistics from Ha Noi’s Department of Industry and Trade showed that by June, only 116 out of 481 petrol stations in the city were selling E5, accounting for just 24 per cent of the total, with the average consumption of around 10,610cu.m per month. -- VNS