Bio-fuel to Be Used Nationwide

Prime Minister Nguyen Tan Dung has issued a roadmap for the blending of bio-fuel with conventional petrol to power road vehicles. This will be applied to producers, blenders, distributors and traders of petroleum products, except for those used for military and security purposes.

 

Accordingly, bio-fuel called E5 will be used first in seven provinces and cities of Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho, Quang Ngai and Ba Ria - Vung Tau from December 1, 2014. The fuel will be used nationwide from December 1, 2015.

 

The respective applicable times for E10 petrol are December 1, 2016 and December 1, 2017.

 

Currently, only three out of more than 10 oil trading companies sell E5 petrol, namely PV Oil, Petec and Saigon Petro. To maintain continuous operation, biofuel plants have to export ethanol to some countries, including the Philippines, South Korea and China, but competitiveness is weak due to high production costs.

 

According to aerodynamic experts, E5 petrol consists of a 5 per cent ethanol in gasoline. The fuel is more environment-friendly and better for engines.