Viet Nam National Petroleum Group (Petrolimex) plans to start selling diesel fuel meeting Euro 5 emissions standards from January 1, 2018, making it the first company to distribute Euro 5-compliant diesel fuel in Viet Nam.
Petrolimex Deputy Director Nguyen Quang Dung said some 70% of Petrolimex stations will sell Euro 5-compliant diesel fuel, which will be priced at around VND15,210 (USD 0.67) per litre or VND 50 (USD 0.002) higher than Euro 2- and Euro 3- compliant diesel fuel currently in the market.
Starting next year, Viet Nam will start requiring Euro 4-compliant diesel fuel, which is supposed to contain a maximum sulphur level of 50 parts per million (ppm), to be sold in the market. So Petrolimex’s announcement to supply Euro 5-compliant diesel fuel, which contains an even lower maximum amount of sulphur (10 ppm) is not a government mandate. Petrolimex said its early introduction of Euro 5 diesel fuel is part of its strategy to compete in the market with higher quality products and services.
Petrolimex began supplying Euro 4 RON 95 petrol from early 2017 and E5 RON 92 (5% ethanol mixed with 95% gasoline) since December 15, 2017. Currently, 82% of its service stations already are selling E5 RON 92.
Dung said Petrolimex will invest some VND1 trillion (USD 43.8 million) in upgrading its service stations nationwide in 2018, in anticipation of the entry of foreign competitors.