Speaking at the Conference to implement the Prime Minister's direction on the possibility of implementing the roadmap for converting to biofuels (E10) in April 2026, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the current context poses a very urgent requirement, especially the pressure on supply, while the official roadmap has been determined from June 1. However, the Prime Minister has directed the Ministry of Industry and Trade to study and exchange with relevant parties to consider the possibility of early implementation.
Today's meeting has all state management agencies, requesting units to clearly and specifically state difficulties and obstacles for timely handling. The results of today's meeting will be the basis for the Ministry of Industry and Trade to summarize and report to competent authorities. Time is running out, if implemented in April, the milestone could be mid-month or at the latest April 30. Thus, the time frame is only about 30 days. This time frame requires very urgent and synchronous preparation" - Deputy Minister Nguyen Sinh Nhat Tan stated clearly.
On the side of the Vietnam Petroleum Association, Mr. Trinh Quang Khanh - General Secretary of the Vietnam Petroleum Association said that, according to the Association's summary, the blending capacity of members currently reaches about 950,000 m3/month. With this capacity, it is entirely possible to meet the demand for biofuel nationwide. In fact, businesses are actively investing in infrastructure, upgrading blending systems, expanding ethanol tanks, and preparing sufficient conditions for deployment.
Regarding the recommendations, the Association proposed a number of specific contents: First, it is necessary to adjust the business cost norms for E10 gasoline higher than mineral gasoline. The reason is that the bio-gasoline production process incurs more costs such as blending, mixing, transportation, preservation and system investment.
Second, regarding the special consumption tax, currently, mineral gasoline used as input is taxed at 10%, while bio-gasoline output is only 7%. This 3% difference is very large, directly affecting the cash flow of businesses. It is proposed to consider applying a uniform tax rate of 7% to ensure fairness and encourage conversion.
Third, regarding the oxygen content, domestic gasoline has almost no oxygen, while imported gasoline is commonly at 1.3-1.5%. If the current standards are maintained, businesses will face difficulties in blending. According to calculations, if forced to use base gasoline without oxygen, the price of bio-gasoline may increase by about 600-700 VND/liter. Therefore, it is necessary to adjust the standards in a flexible direction, harmonizing technical requirements and market conditions. The proposed level of about 5-5.2% is suitable for reality.
Fourth, regarding testing laboratories, investing in octane index measuring equipment costs very high, possibly up to tens of billions of VND. Meanwhile, the draft new regulations allow leasing licensed testing laboratories. It is proposed to soon apply this mechanism to reduce the investment burden for businesses.
Agreeing with the opinion, the issue mentioned by many businesses is the standard for oxygen content in gasoline. According to Petrolimex's reflection, domestic gasoline currently has very low or no oxygen content, while imported gasoline usually has an oxygen content of about 1.3-1.5%. When mixed with 10% more ethanol, the total oxygen content may exceed the current standard threshold of 3.7%.
In some cases, the oxygen content can be up to 5.1 - 5.2%. If the standards are not adjusted accordingly, the production and supply of E10 gasoline, especially high-quality gasoline lines that meet Euro 4 and Euro 5 emission standards, will face difficulties, and may even be unable to be deployed synchronously.
Answering opinions from businesses, representatives of the Ministry of Science and Technology said that regarding the amendment of technical regulations on gasoline, especially adjusting the oxygen content from 3.7% to about 5%, specialized agencies have now issued official letters to collect opinions from ministries, branches, localities and businesses. The official letter was signed and issued today (March 26), requesting relevant units to urgently study and have comments to send to the focal agency for synthesis. According to the plan, the deadline for receiving comments is April 24. After receiving all comments, within about 1 week, the drafting agency will receive, amend, complete the draft and submit for promulgation a new regulation.
Regarding contents related to testing laboratories, licensing and conformity certification, representatives of the Ministry of Science and Technology request businesses to fully summarize recommendations and send them officially to the Ministry of Science and Technology through the standard agency. Contributing opinions should be made immediately based on the issued official dispatch, and sent to the Ministry of Industry and Trade for coordination in handling.
Regarding recommendations related to taxes, representatives of the Ministry of Finance said that currently, the Ministry is still continuing to research and complete relevant policy proposals. Regarding recommendations on environmental protection tax, businesses are requested to clarify the proposed content: reduction or exemption, reduction at what level, applicable to all or each type of gasoline. At the same time, it is necessary to specifically assess the impact on the budget and the market, to have a basis for consideration.
