In an effort to reduce the environmental impact of local traffic, Vietnamese officials are working to introduce E5 biofuel into the local market, though they have their work cut out for them.
While some news outlets, including DTI, have alleged the Vietnamese government will make the nationwide switch from A92 petrol to E5 biofuel – a mixture of 95% A92 petrol and 5% biofuel ethanol – as soon as June 2017, Deputy Minister of Industry and Trade Hoang Quoc Vuong said during a recent press conference that there is no clear timeline on when Vietnam will be offering biofuel countrywide, reports Tuoi Tre.
“There is not yet an official decision regarding when A92 petrol will be replaced so the information alleging that Vietnam will switch to E5 biofuel in June 2017 is inaccurate and unlikely because there is not yet large-scale biofuel production,” the minister explained to reporters.
While the timeline itself is unclear, government officials are working toward the adoption of the slightly more environmentally friendly biofuel. The ethanol biofuel used in E5 is currently produced by just four factories in the country, the largest of which is capable of producing 150,000 tons of the product a year.
The Ministry of Industry and Trade has already asked the Ministry of Finance to assist in calculating appropriate prices for E5 and E10 biofuel, according to DTI.
In fact, E5 has already been introduced in several parts of the country, including Quang Ngai, Quang Nam, Da Nang, Hanoi, Saigon, Hai Phong, Can Tho and Ba Ria-Vung Tau, however its cost is considered too high to be competitive with other fuels.
According to Tuoi Tre, the price of E5 is currently just VND150 cheaper than A92, but consumers are hesitant to purchase the product. However, if the price of E5 were VND1,000-2,000/liter cheaper than A92, Nguyen Van Tiu, general director of Tu Luc I Petrol Company, told the news outlet, more people would consider using the biofuel.
[Photo via Tieu Dung Plus]
