Viet Nam News
HÀ NỘI — Saigon Petro has proposed to bring petrol A92 back to the market when the consumption of E5 bio-fuel is low and it is not meeting the target of environmental protection.
The proposal is part of a recommendation on environmental protection tax and policies to develop bio-fuel in the future, which was recently sent to the ministries of Trade and Industry and Finance, and after two and a half months, fuel A92 or RON 92 was replaced with E5 bio-fuel.
Under the prime minister’s decision, E5 fuel, which is a mix of A92 petrol (95 per cent) and bio-fuel ethanol (5 per cent), has been officially sold nationwide to replace A92 since January 1, this year.
Currently, there is A95 gasoline, which is suitable for vehicles with high-engine displacement, and E5, which is suitable for low-engine displacement. In Việt Nam, the rate of motorbikes, which have low-engine displacement, accounts more than 90 per cent of vehicles in circulation.
Saigon Petro said through references of its big fuel wholesale agents, the volume of E5 bio-fuel sold was 30 per cent of the market share, while the remaining 70 per cent was gasoline A95. Previously, A92 occupied 65 per cent of the market share.
A firm leader told nguoilaodong.com.vn that the sale of E5 petrol is expected to account for 70 per cent and A95 30 per cent of total volume of petrol sold in the market.
According to the calculation of Saigon Petro, in the first two months of this year, the consumption of non-essential A95 petrol was up to VNĐ400 billion per month, due to the consumers’ psychology. Many types of motorcycles can use A92 or E5 as they do not need to use the high-priced A95 gasoline.
Saigon Petro said if there was no way to raise the consumption volume of E5, the Government and relevant ministries should allow bringing A92 back to the market to curb usage of A95. The price of A95 is currently 8 per cent higher than E5, while the different rate should be 20 per cent to encourage consumers using E5.
“Our opinion is that people who use A95, which affects the environment, will be charged a higher price in order to support people who use E5, which is to protect the environment,” said the Saigon Petro leader.
“The environment protection tax of A95 should be raised from current VNĐ3,000 to VNĐ4,000 per litre and the tax on E5 should be decreased from VNĐ2,850 to VNĐ2,500 per litre in order to lure the consumer,” he added.
Although the price of A95 is about VNĐ1,600 per litre, higher than E5, many consumers prefer A95.
Nguyễn Thanh Hương, a Hà Nội resident who owns a scooter, told Việt Nam News that she still used A95 for her vehicle because it was said that it was much better than E5, which may cause problems to the vehicle’s engine.
“Its price is higher than E5 but I do not care much about it. I always spend about VNĐ100,000 for a full tank of petrol; it is just about VNĐ6,000-7,000 higher than E5,” said Hương.
The Deputy Director of Củ Chi Commercial and Industrial Development Investment JSC, Nguyễn Văn Tâm, said that if the use of A92 petrol is allowed, it will be a step backward.
“We need to use E10 and E20 like many other countries in the world. The main issue is to raise people’s awareness so that people understand the use and efficiency of bio-fuel,” said Tâm. — VNS