From January 1, 2018: Termination of RON 92 Gasoline Production and Business Activities

After listening to and consulting with the delegates at the meeting on the situation and results of the Biofuel Development Scheme held on May 11, 2017, the Deputy Prime Minister of the Government of Vietnam, Trinh Dinh Dung, reached the following two noteworthy conclusions:

- Allow the existence of two types of gasoline, RON 92 and E5 RON 92, until December 31, 2017;- From January 1, 2018, only the production and business of E5 RON 92 and mineral gasoline RON 95 are permitted.

Thus, from this point onward, RON 92 gasoline will no longer be produced or marketed.

This regulation aims to ensure energy security, gradually reduce dependence on mineral gasoline, improve the environment, and effectively fulfill the Government of Vietnam's international commitments on reducing greenhouse gas emissions. It also aims to create sustainable income for the agricultural sector and promote the restructuring of agriculture.

According to the instructions of the Deputy Prime Minister in Announcement 255/TB-VPCP, to ensure the effectiveness of the aforementioned roadmap, relevant ministries and sectors must effectively perform their assigned duties. Specifically:

Ministry of Industry and Trade:

- Calculate an appropriate roadmap and steps to replace all RON 92 mineral gasoline with E5 RON 92 gasoline; continue to deploy E10 gasoline, ensuring no impact on merchants' production, business, and public use;- Monitor, inspect, and urge key fuel trading enterprises to ensure the supply of biofuels (E5 RON 92, E10) to the market; organize blending, distribution, sales, and service systems for E5 RON 92 gasoline to ensure quality;- Coordinate with relevant ministries and sectors to propose the application of fuel product quality standards equivalent to EURO 2, EURO 3, EURO 4, and EURO 5 standards, meeting emission standards for newly produced, assembled, and imported automobiles and motorcycles and fuel business regulations.

Ministry of Finance:

- Monitor, inspect, and supervise the gasoline price administration to ensure that the price of E5 RON 92 and E10 biofuels does not increase, making them attractive to users;- Research, develop, and issue appropriate import tax policies for fuel ethanol (E100) to prevent the monopoly by domestic ethanol producers; impose cassava raw material export taxes to ensure supply for biofuel ethanol production plants;- Coordinate with related agencies and units to develop environmental protection tax levels for biofuel products (E5 RON 92 gasoline, E10; B5, B10 diesel oil).

Ministry of Agriculture and Rural Development:

- Urgently build a cassava raw material zone plan to stabilize the supply of inputs for biofuel production plants;- Collaborate with relevant ministries and sectors to develop preferential policies to support biomass raw material production for biofuel production.

Especially, Vietnam Oil and Gas Group, Vietnam National Petroleum Group, and key fuel trading enterprises, fuel distributors must:

- Ensure the supply of ethanol for implementing Directive 23/CT-TTg dated August 31, 2015, of the Prime Minister of the Government of Vietnam;- Expand more E5 RON 92 gasoline blending stations in the northern region and other localities;- Develop plans and conversion scenarios to meet the schedule and roadmap to ensure that only E5 RON 92 and RON 95 mineral gasoline are produced and marketed from January 1, 2018.

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