Businesses have proposed the Ho Chi Minh City People’s Committee to implement a citywide sale of ethanol gasoline E5 by November 30 at a meeting with the city’s Department of Industry and Trade on Tuesday.
Department deputy director Le Ngoc Dao said that after seven month pilot distribution of the bio blend, it has been available at 55 filling stations with an average consumption level of 4,523 cubic meters a month, accounting for 3 percent of total petrol output supplied in the city.
The number of stations filling gasoline E5 is limited compared to those selling traditional petrol, she said.
The most difficulty has been from popularization issues, aiming to mobilize residents to change their long habit of using traditional gasoline into filling the new fuel, according to the department.
On the other hand, relevant ministries and agencies have lacked incentives and specific guidance for the blend’s distribution and consumption. Most filling stations are of small scale with insufficient area to install gasoline E5 pumping facilities.
The department said it would propose the Ministry of Industry and Trade to issue guidance documents and incentives to promote the blend consumption.
Otherwise, it would also suggest the city People’s Committee to make proposals to the Government on assistance polices and tax, fee and percentage reduction so as to further lower gasoline E5 prices.
Director General of Saigon Petro Dinh Van Sang said that the quality of gasoline E5 is not inferior to that of mineral fuel. However the blend is priced only VND500-1000 a liter lower than A92 and A95 petrol making it unattractive to consumers.
On the other hand, authorized agencies should make petrol distribution synchronous. Specifically, they should instruct all filling stations in the city to stop selling gasoline A92 and only provide E5 by November 30 to get results as expected in the bio gasoline consumption policy.
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