Vietnam to sell E5 at a lower price than biofuel use
To encourage the use of biofuels, Vietnam’s Prime Minister Nguyen Tan Dung has decided to set the price of E5 lower than that of 100% gasoline with a Research Octane Number (RON) of 92, the country’s most popular fuel grade. E5 is a 5% blend of cassava-based ethanol and 95% gasoline.
E5 will be VND300-500 (USD0.014-0.023) lower than RON 92 gasoline, which currently costs about VND15,670 (USD0.72) per litre, according to local media.
E5 is currently only available at retail outlets in major cities in Vietnam. Nationwide implementation is supposed to occur this year. Implementation even in the major cities took longer than expected because of poor uptake and feedstock challenges.
Nguyen has also asked the Ministry of Finance to review the tax regulations on biofuels, which may include raising export tariffs on ethanol and cassava to keep more supplies in the country. Vietnam currently has three ethanol plants.
The sale of E5 started on a trial basis last September.