Pursuant to the Directive No.23/CT-TTg issued on August 31, 2015 of the Prime Minister, fuel trading enterprises in 8 cities and provinces are required to have at least 50% of their filling stations selling E5 by the end of November, 2015.  

The content of the Directive No.23/CT-TTg, implemented pursuant to the roadmap of application of mixing rate of biofuel with traditional fuel, is the enhancement of using, mixing, and distributing biofuel.

Accordingly, the Prime Minister requested MOIT to cooperate with Ministry of Information and Communications, Ministry of Science and Technology in order to develop a National communications program to encourage the use of E5 petrol.

The propaganda about the use and benefits of E5 petrol must be broadcast to local people in the cities and provinces (Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, Can Tho, Quang Ngai, Quang Nam and Ba Ria – Vung Tau ) in the roadmap of E5 petrol distribution.

Simultaneously, Ministry of Finance will sponsor and cooperate with MOIT to provide instructions on calculation of basic price of E5 petrol; coordinate with ministries and branches to study and promulgate mechanisms of tax preference towards biofuel (ethanol) for the purpose of reducing the selling price of E5 petrol.

Fuel trading enterprises are also supported in establishing and using a petrol price stabilization fund so as to lower selling price of E5 petrol.

People’s Committees of 8 cities and provinces will consider the reality of each area to steer agencies and units using State budget to use E5 petrol for means of road transportation (if in-place E5 petrol sources of supply are able to meet petrol demands).

 A filling station selling E5 petrol in Ho Chi Minh City

Directive No.23 also specifies that fuel traders, general agencies, and agencies in these cities and provinces need to expand their E5 petrol retail store networks, and must achieve at least 50% of E5 filling stations in their networks. Fuel trading enterprises of 8 cities and provinces must submit reports on plan and progress of investment in E5 petrol mixing stations, expansion of E5 petrol retail store networks (to November 30, 2015) to MOIT before September 05, 2015.

At present, there are not many cities and provinces having a rate of E5 petrol stations which is over 10-25%. For instance, by mid-2015, there were only 31 E5 filling stations of total 483 filling stations in Hanoi, accounting for 6.5%; 55 E5 filling stations of total 500 petrol stations in Ho Chi Minh City, accounting for 10.7%.  

The cities and provinces having the highest numbers of filling stations selling E5 are Quang Ngai, Da Nang, Ba Ria – Vung Tau. Most of filling stations in Quang Ngai Province have shifted to sell E5 petrol instead of Mogas RON 92 petrol. In other provinces, only fuel trading enterprises have actively shifted to sell E5 petrol or establish more E5 pumping stations. The number of agencies and private filling stations selling E5 is still limited.

In June, 2015, Deputy Prime Minister Hoang Trung Hai provided directions for the promotion of biofuel consumption and urged fuel trading enterprises in 8 cities and provinces selected for the roadmap of biofuel distribution to have at least 50% of E5 filling stations by the end of November this year. 

Ngoc Anh