A man buys at a petrol station on Nguyen Hong street in Hanoi (Photo: VNA)Hanoi (VNA) - Wholesale petroltraders should make more efforts to raise the market share of bio-fuel E5 inthe country, said Deputy Minister of Industry and Trade (MoIT) Do Thang Hai.
Hai was speaking at a recent meeting withpetrol wholesalers on the implementation of the bio-fuel, E5 RON 92, andsolutions to ensure the fulfilment of the roadmap and target set by the PrimeMinister.
He said although the output of bio-fuel E5had grown remarkably in recent times, it was not up to expectations.
E5 RON 92 consists of five percent ethanoland 95 percent petrol. The fuel is used in many countries as it helps protectthe environment and can ensure energy security and sustainable development.
In Vietnam, two kinds of gasoline are sold:E5 bio-fuel and mineral oil RON 95.
In the first two months of this year,domestic petrol consumption reached some 1.43 million cu.m, of which E5 RON 92was 593,609 cu.m, accounting for some 42 percent, and RON 95 was 836,296 cu.m,accounting for some 52 percent.
The volume of bio-fuel consumption inJanuary-February increased by 8 to 9 percent compared to the same period lastyear. Some of the key players with high bio-fuel consumption of total salesinclude Thien Minh Duc JSC (70.93 percent), Military Petroleum Corporation(62.37 percent), PetroVietnam Oil Corporation (PVOil) (51.37 percent), VietnamNational Petroleum Group, or Petrolimex (47.06 percent) and Hai Linh CompanyLtd (46.24 percent).
Deputy General Director of Petrolimex TranNgoc Nam said with the responsibility of being a key player in the market,Petrolimex had strongly directed the deployment of E5 trading throughout itssystem. Eighty-two percent of Petrolimex stations sell E5.
“The group has developed a policy toencourage the retail sale of E5 in petrol stations, aiming to make theconsumption of E5 higher than that of RON 95,” said Nam.
The Petrolimex leader said the proportionof bio-fuel had not reached the expected volume as consumers did not completelytrust E5 and the price difference between bio-ethanol E5 and mineral oil RON 95was not huge enough to attract consumers.
Nam also said the price of cassava, neededto produce E100 for blending E5 gasoline, was rising, which increased theproduction price, creating difficulties for businesses.
In the domestic market, Tung Lam Co., Ltdis the only E100 ethanol supplier. Due to the high price of cassava, thecompany has had to raise the price of E100 too. This is a major concern forgasoline dealers, which they mentioned at the meeting.
Vu Kien Chinh, General Director of Tung LamCompany, said in 10 months (from June 2017 to April 15, 2018), cassava priceincreased by 2,000 VND per kilo (from 3,600 VND to 5,600 VND).
Chinh confirmed that the E100 priceincrease was not due to monopoly and that in increasing the price of cassava,the largest beneficiaries were the growers.
“We would like to be supported by Statemanagement agencies to facilitate the production of E100 in the country insteadof importing it from abroad,” said Chinh.
General Director of PVOIL Cao Hoai Duong saidto rightly understand E5, there was a need for public orientation and knowledgedissemination in the right way.
“The difference in price between E5 and RON95 should be 1,800-2,000 VND, which will make E5 more attractive,” said Duong.
Concluding the meeting, Hai affirmed MoIT’ssupport to legitimate business enterprises that always cooperated with othersto develop together.
He requested enterprises to seriously andpersistently implement and continue to take more aggressive measures toincrease the market share of E5 petrol business.
As for the supply of E100 for blending E5gasoline, Hai asked the Tung Lam Company, as well as some other ethanolfactories that will be launched in the near future, to minimise productioncosts in order to create the product E100, which will be able to compete withimported products and raise domestic consumption.
Hai also requested petrol stations toinstall E5 gasoline pumps in convenient locations and said there was a need tohave more pump piers.
“Each staff member at petrol stations mustbe an active consultant and facilitator, helping consumers have the rightunderstanding of E5 bio-fuel and make the right choice,” Hai said.-VNA
Hai was speaking at a recent meeting withpetrol wholesalers on the implementation of the bio-fuel, E5 RON 92, andsolutions to ensure the fulfilment of the roadmap and target set by the PrimeMinister.
He said although the output of bio-fuel E5had grown remarkably in recent times, it was not up to expectations.
E5 RON 92 consists of five percent ethanoland 95 percent petrol. The fuel is used in many countries as it helps protectthe environment and can ensure energy security and sustainable development.
In Vietnam, two kinds of gasoline are sold:E5 bio-fuel and mineral oil RON 95.
In the first two months of this year,domestic petrol consumption reached some 1.43 million cu.m, of which E5 RON 92was 593,609 cu.m, accounting for some 42 percent, and RON 95 was 836,296 cu.m,accounting for some 52 percent.
The volume of bio-fuel consumption inJanuary-February increased by 8 to 9 percent compared to the same period lastyear. Some of the key players with high bio-fuel consumption of total salesinclude Thien Minh Duc JSC (70.93 percent), Military Petroleum Corporation(62.37 percent), PetroVietnam Oil Corporation (PVOil) (51.37 percent), VietnamNational Petroleum Group, or Petrolimex (47.06 percent) and Hai Linh CompanyLtd (46.24 percent).
Deputy General Director of Petrolimex TranNgoc Nam said with the responsibility of being a key player in the market,Petrolimex had strongly directed the deployment of E5 trading throughout itssystem. Eighty-two percent of Petrolimex stations sell E5.
“The group has developed a policy toencourage the retail sale of E5 in petrol stations, aiming to make theconsumption of E5 higher than that of RON 95,” said Nam.
The Petrolimex leader said the proportionof bio-fuel had not reached the expected volume as consumers did not completelytrust E5 and the price difference between bio-ethanol E5 and mineral oil RON 95was not huge enough to attract consumers.
Nam also said the price of cassava, neededto produce E100 for blending E5 gasoline, was rising, which increased theproduction price, creating difficulties for businesses.
In the domestic market, Tung Lam Co., Ltdis the only E100 ethanol supplier. Due to the high price of cassava, thecompany has had to raise the price of E100 too. This is a major concern forgasoline dealers, which they mentioned at the meeting.
Vu Kien Chinh, General Director of Tung LamCompany, said in 10 months (from June 2017 to April 15, 2018), cassava priceincreased by 2,000 VND per kilo (from 3,600 VND to 5,600 VND).
Chinh confirmed that the E100 priceincrease was not due to monopoly and that in increasing the price of cassava,the largest beneficiaries were the growers.
“We would like to be supported by Statemanagement agencies to facilitate the production of E100 in the country insteadof importing it from abroad,” said Chinh.
General Director of PVOIL Cao Hoai Duong saidto rightly understand E5, there was a need for public orientation and knowledgedissemination in the right way.
“The difference in price between E5 and RON95 should be 1,800-2,000 VND, which will make E5 more attractive,” said Duong.
Concluding the meeting, Hai affirmed MoIT’ssupport to legitimate business enterprises that always cooperated with othersto develop together.
He requested enterprises to seriously andpersistently implement and continue to take more aggressive measures toincrease the market share of E5 petrol business.
As for the supply of E100 for blending E5gasoline, Hai asked the Tung Lam Company, as well as some other ethanolfactories that will be launched in the near future, to minimise productioncosts in order to create the product E100, which will be able to compete withimported products and raise domestic consumption.
Hai also requested petrol stations toinstall E5 gasoline pumps in convenient locations and said there was a need tohave more pump piers.
“Each staff member at petrol stations mustbe an active consultant and facilitator, helping consumers have the rightunderstanding of E5 bio-fuel and make the right choice,” Hai said.-VNA
VNA
