This announcement was made during a mid-year review conference on fuel supply and strategic plans for the second half of 2025, organized by the Ministry of Industry and Trade on June 25.

Accelerating biofuel integration into the market

gia xang nguyen hue 3 37245.jpg
Biofuel E10 is expected to roll out nationwide starting January 1, 2026. Photo: Nguyen Hue

At the conference, Bui Ngoc Bao, Chairman of the Vietnam Petroleum Association, stated that on November 22, 2012, the Prime Minister issued Decision No. 53/2012/QD-TTg, outlining a roadmap for blending biofuels with conventional fuels.

According to the roadmap, from December 1, 2014, E5 gasoline was to be produced and sold in seven major cities and provinces, including Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho, Quang Ngai, and Ba Ria - Vung Tau. From December 1, 2015, E5 was to be sold nationwide. E10 gasoline was to be introduced in these seven localities from December 1, 2016, and nationwide from December 1, 2017.

However, implementation of E10 has been delayed by nearly a decade. Bao suggested that the Ministry of Industry and Trade set a firm timeline, proposing January 1, 2026, as the official nationwide transition date to allow businesses time to prepare.

Concerns remain among companies and regulators regarding the rollout. One major issue is the requirement for blending stations. Bao pointed out that most distributors currently rent storage from wholesalers. Instead, they could rent blending stations from wholesalers and pay fees for mixing, which could make the process operational within three to four months.

On the production side, Tran Ngoc Nam, Deputy General Director of Petrolimex, confirmed full support for biofuel commercialization. Starting August 1, Petrolimex plans to pilot E10 distribution in Ho Chi Minh City to evaluate technical compatibility and consumer acceptance, with a formal report to be submitted to the Ministry.

Nguyen Viet Thang, General Director of Binh Son Refining and Petrochemical JSC (BSR), stated that their blending system fully meets the demand for E5. For E10, the company is currently upgrading storage tanks to enable mixing.

Major clients like Petrolimex and PV OIL, with in-house blending capacity, will receive base gasoline for on-site mixing. At present, BSR supplies about 30% of fuel as finished biofuel and 70% as base fuel for self-blending.

PetroVietnam also announced plans to restart its Dung Quat Ethanol Plant in Quang Ngai to ensure stable biofuel supply.

Biofuel use: a necessary transition

Minister of Industry and Trade Nguyen Hong Dien emphasized that biofuel blending is crucial for environmental protection and carbon neutrality. With fossil fuel supplies increasingly vulnerable to geopolitical tensions and conflicts, securing alternative, natural-origin fuel sources is more important than ever.

At the conference, the Minister tasked the Department of Domestic Market Management with leading a coordinated effort - including the Department of Innovation, Green Transition, and Industrial Promotion - to finalize and implement the E10 rollout, targeted for January 1, 2026. The Ministry will also expedite a review report on Decision 53/2012 to serve as the foundation for this new roadmap.

For 2025, the Ministry assigned a minimum total fuel supply of 29.52 million m³/tons to key traders, comprising 28.31 million m³/tons for ground fuel and 1.21 million m³ for aviation fuel.

Domestic fuel consumption in the first half of 2025 is estimated at 13.86 million m³/tons - 47% of the annual allocation and a 1.1% increase compared to the same period in 2024 - closely aligned with quarterly projections registered with the Ministry.

Hanh Nguyen