Petrolimex to replace mineral petrol with biofuel ahead of schedule
The Vietnam National Petroleum Group (Petrolimex) is accelerating efforts to expand the rollout of E10RON95 biofuel nationwide, aiming to fully replace mineral pertrol ahead of schedule.
The group plans to scale up the distribution of E10RON95 as early as April, following encouraging results from its pilot programme. Current consumption has reached an average of 95 cu.m per day, up around 40% compared to the start of the trial phase launched on August 1, 2025.
Petrolimex has piloted the biofuel at 60 petrol stations in Ho Chi Minh City and central Quang Ngai province. To date, no customer complaints regarding fuel quality have been recorded, reflecting growing consumer confidence in the product, it said.
Following the issuance of Circular No. 50/2025/TT-BCT by the Ministry of Industry and Trade last November, which outlines the roadmap for blending biofuels with traditional fuels and targets the complete replacement nationwide starting June 1 this year, Petrolimex has upgraded storage facilities and blending systems, secured ethanol supply sources, and optimised logistics and base fuel planning.
The transition comes amid global supply uncertainties, including disruptions linked to tensions in the Middle East. Petrolimex estimates that replacing the entire mineral petrol with E10RON95 could cut its monthly mineral fuel volume by nearly 10%, equivalent to 35,000–40,000 cu.m.
However, challenges remain. The firm requires 45,000–50,000 cu.m of ethanol per month for producing the biofuel while domestic production can only meet part of the demand.
Since early March, Petrolimex has been negotiating both short- and long-term import contracts with partners in the US, the Republic of Korea, and Singapore to secure sufficient supply though costs may rise due to global transport and fuel price hikes.
To promote wider adoption, it has proposed policy support, including environmental tax reductions, clearer fuel standards and strict quality control measures to ensure consumer confidence in the lower-emission fuel.
Vietnam ready for nationwide E10 biofuel rollout from June 1
Major fuel distributors and domestic refineries are accelerating preparations to ensure sufficient supply, infrastructure and technical capacity for the nationwide sale of E10 biofuel starting June 1.
