Viet Nam will replace RON 92 petrol with E5 bio-fuel from the beginning of next year.

Accordingly, the supply of RON 92 petrol will be halted in all localities across the country. This was announced by the Government Office following the latest decision passed by Deputy Prime Minister Trinh Dinh Dung concerning the bio-fuel development project and the roadmap for shifting to bio-fuel mixed with fossil fuels.

RON 92 petrol and E5 bio-fuel, a mix of RON 92 (95 per cent) and bio-fuel ethanol (5 per cent), will co-exist by December 31, 2017. From January 1, 2018, only E5 bio-fuel and RON 95 will be produced and available for purchase.

“The ban of RON 92 grade is in line with the Government’s effort to boost sales and consumption of environment-friendly E5. The shift will also contribute to ensuring energy security, reducing dependence on fossil fuels and implementing the commitments made by the Vietnamese Government to reduce greenhouse gas emissions, among others,” said the Government statement.

The decision is expected to facilitate petrol dealers in the trading of E5 bio-fuel, as consumers will no longer have access to RON 92 petrol.

The Deputy PM also directed the Ministry of Industry and Trade (MoIT) to supervise petrol wholesalers to ensure a stable supply and quality of bio-fuel to the market.

The MoIT is required to cooperate with the ministries of Science and Technology, Finance (MoF) and Transport; the Viet Nam National Oil and Gas Group (PetroVietnam); and the Viet Nam National Petroleum Group (Petrolimex) to propose the application of petrol products quality to ensure they meet the standards of EURO 2, EURO 3, EURO 4 and EURO 5.

Meanwhile, the MoF was told to control the price of bio-fuel to avoid price increases while developing policies to avoid the monopoly of ethanol production.

The MoF would cooperate with the Ministry of Agriculture and Rural Development and MoIT to build a floor buying price of cassava, the main raw material in the production of ethanol.

It would also research to build and promulgate tax policies for imported ethanol to prevent monopoly of local ethanol producers.

Previously, many plans on the wide use of E5 bio-fuel were set but missed their deadline. The Government last year confirmed that plans to start compulsory sales of E5 in eight provinces and cities had been delayed because domestic consumers had shown little interest in making the switch from RON 92 petroleum.

In the latest move, the MoIT said on its online portal that it “may completely replace all RON 92 with E5 by mid-2017”. However, this timeline was moved to the beginning of 2018. — VNS