E5 bio-fuel is encouraged in provinces and cities to replace traditional fuels.
The request was included in the Government Office’s notice on Deputy Prime Minister Hoang Trung Hai’s decision at a meeting summing up the production and trade of the bio fuel and regulating its price mechanism.
Deputy PM Hai requested other centrally-governed cities and provinces to have the bio fuel sold at a minimum of 50% of their retail fuel stations and half of the current RON 92 consumption to be replaced by the bio fuel by June 1.Efforts made by relevant ministries, agencies and localities to promote the fuel’s usage were highlighted and they were asked to continue implementing assigned tasks in PM Nguyen Tan Dung’s decision on using the bio fuel to replace traditional fuels.
The Ministry of Industry and Trade (MOIT) was asked to work with relevant agencies and localities to promote communication to encourage people to use the bio fuel while urging petroleum businesses to realise the set target in increasing the number of their retail fuel stations selling E5 bio-fuel and to report the results to the PM.
The Ministry of Finance was assigned to work with the MOIT to develop an approach to calculate the bio fuel’s base price to ensure effectiveness of the distributors and complete the work in January while considering a 5% value-added tax to E5 and E10 fuels to encourage the usage and reporting to the PM.
E5 is a mixture of 95 per cent petrol and 5 per cent bio-ethanol, produced mostly from corn and cassava.
