Expert advice on ways to fuel the E5 revolution

Information about the benefits of E5 bio-fuel should be disseminated

Phan The Rue, President, Vietnam Petroleum Association: The State should support small businesses

While major petroleum wholesalers are capable of improving their facilities to get ready for selling E5 bio-fuel instead of RON92 mineral petrol, the state needs to provide financial support for small businesses so that they will not lag behind in implementing this sound government decision. Due to their limited financial capacity, small businesses cannot afford to invest in building the necessary facilities for selling E5 bio-fuel. Moreover, it is difficult to persuade private companies and agents, which purchase petrol from wholesalers, to sell bio-fuel because they are afraid the bio-fuel loss rate is higher compared with mineral petrol. To encourage the use of E5 bio-fuel, a public information campaign should be launched to improve consumer awareness of bio-fuel advantages compared with mineral petrol.

Tran Phuoc Hien, Director, Quang Ngai Province Department of Industry and Trade: Authorities should ensure tight control of transportation

State authorities should maintain tight coordination in controlling the transportation of petrol and ethanol to prevent the circulation of substandard products in the market. Manufacturers, distributors and the provincial department of industry and trade should speak directly with consumers and give top priority to protecting their interests. The department will work with distributors and general agents to appeal to petroleum trading agents in Quang Ngai Province to participate in distributing E5 RON92 bio-fuel instead of traditional mineral petrol. At the same time, the department will ask distributors and general agents to provide technical guidance for petroleum trading agents to improve their warehousing facilities for E5 RON92 bio-fuel.

Vu Kien Chinh, Vice President, Vietnam Bio-fuel Association: Bio-fuel plants should be supported to resume operations

Currently, the import of E100 (pure ethanol) is taxed at 20 percent, a rate affordable for most Vietnamese ethanol plants. However, if the rate is reduced to 10 or 15 percent, Vietnamese ethanol will not be able to compete with foreign products.

To support Vietnamese ethanol plants, including plants which have resumed operations, and ones preparing to do so, the Vietnam Bio-fuel Association proposed maintaining the import tax rate applied to E100 at 20 percent. On the other hand, to prevent a monopoly of domestic E100 manufacturers, the Ministry of Industry and Trade has asked them to report to the ministry their production costs, material prices and prices at which they sell to petroleum companies. This will enable the Ministry of Industry and Trade and the Ministry of Finance to intervene, if necessary, to ensure equality among businesses.

Nguyen Manh Hung, Secretary General, Vietnam Standards and Consumers Association: Changing consumer habits

To popularize the use of E5 bio-fuel, it is necessary to intensify the spread of public information in order to change consumer habits and improve their awareness of the new fuel’s benefits.

The price gap between bio-fuel and traditional mineral petrol must be big enough to encourage consumers to use bio-fuel. Authorities must also ensure the quality of E5 bio-fuel and prevent the circulation of substandard products. Consumers should be provided with clear instructions for use of bio-fuel.