Ministry of Industry and Trade of Vietnam requests implementation of measures to promote biofuel consumption

Ministry of Industry and Trade of Vietnam requests implementation of measures to promote biofuel consumption​ (Image from the internet)

The Minister of Industry and Trade of Veitnam has just signed and issued Directive 16/CT-BCT dated December 26, 2024, regarding intensifying actions to promote biofuel consumption in Vietnam.

Ministry of Industry and Trade of Vietnam requests implementation of measures to promote biofuel consumption

In recent times, the Ministry of Industry and Trade of Vietnam has taken the lead in coordinating with relevant ministries, sectors, and bodies to carry out numerous activities to implement Decision 53/2012/QD-TTg on promulgating the roadmap for blending biofuels with traditional fuels.

Despite having firmly committed to encouraging the use of biofuels, the trend in using these fuels has not met expectations.

Given this situation, the Minister of Industry and Trade has directed the Domestic Market Department to:

- Continue to cooperate with relevant units to reinforce, monitor, and urge localities and petroleum businesses to promote the business of biofuel petrol (E5 RON92, E100) in the market.

- Instruct key petroleum trading firms to report to the Ministry of Industry and Trade every three months on the progress of E5 RON 92 business implementation to identify any challenges encountered during the process.

- Coordinate with the Ministry of Finance and relevant agencies to review documents, and to research and formulate pricing mechanisms to ensure the appeal of using E5 RON92 biofuel.

- Closely collaborate with the Science and Technology Department and relevant units to inspect, review, and assess the status and results of the biofuel blending roadmap as per Decision 53/2012/QD-TTg.

- Work closely with media agencies to provide regular and comprehensive information regarding the petroleum supply, and the market management of petroleum by the Joint Ministry of Industry and Trade - Finance and related ministries and sectors to create stability and consensus in public opinion. Enhance public communication to encourage the community to use biofuels.

Additionally, the Ministry of Industry and Trade requires petroleum businesses to seriously continue implementing the following tasks and specific solutions:

(1) Leading petroleum trading businesses to:

- Ensure the supply of E5 RON 92 biofuel meets market demand according to the roadmap prescribed in Decision 53/2012/QD-TTg. Report the implementation status to the Ministry of Industry and Trade (Domestic Market Department and Science and Technology Department) by the 28th of each quarter for consolidated reporting.

- Focus on sharing supply, and profit-sharing within the distribution system reasonably to ensure the uninterrupted provision of petroleum in the market. Support and encourage distribution businesses, and retail enterprises within the business network to boost biofuel consumption through preferential programs and appropriate pricing policies to enhance competitiveness compared to traditional fossil fuels.

- Be responsible for providing full, prompt statistical data to competent authorities (Ministry of Finance, Ministry of Industry and Trade ...) as a basis for precisely updating and fully calculating petrol business costs in the base price formula for petroleum, biofuel, ensuring effectiveness in management, price stabilization of petroleum commodities, and harmonizing interests of the State, businesses, and the public.

(2) Leading businesses and petroleum distributors:

- Proactively cooperate with competent authorities to propose mechanisms and policies supporting the development of biofuels, including tax incentives, fee reductions, or other forms of support to decrease costs and enhance the competitiveness of biofuels to expand the biofuel consumption market, particularly in localities and areas with a high consumption potential.

- Actively collaborate with the People's Committees and Departments of Industry and Trade of centrally managed cities to enhance information dissemination and promotion of E5 RON 92 usage, affirm quality and technical standards to assure consumers to use with confidence, encouraging the community to increase biofuel usage.

Refer to more details in the Directive 16/CT-BCT issued on December 26, 2024.

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