Tuesday,  Sep 25, 2018,09:47 (GMT+7) 0 0
Bio-fuel consumption makes up 30% of gasoline sales in HCMC
The Saigon Times Daily
Wednesday,  Jan 3, 2018,23:37 (GMT+7)

Bio-fuel consumption makes up 30% of gasoline sales in HCMC

The Saigon Times Daily

File photo of a motorcycle being refilled with E5 bio-fuel in HCMC - PHOTO: THANH HOA

HCMC – The consumption of bio-fuel E5 accounts for a mere 30% of total gasoline sales in HCMC as consumers have yet to trust the quality of this type of gasoline, a mixture of 95% RON 95 gasoline and 5% ethanol.

Fossil fuel RON 92 has been completely replaced by E5 three days ago.

Fuel retailers ascribed the small consumption of E5 to the consumer’s reluctance to switch to using it for fears that it might negatively affect the engines of their vehicles. They said the demand for RON 95, a higher-grade type of gasoline, had surged.

The price of E5 is VND1,000-1,200 per liter lower than RON 95.

According to fuel retailers, a bigger difference in price might help boost bio-fuel sales. But consumers are not yet confident in the quality of E5.

A leader of a local fuel retail firm said a majority of consumers prefer RON 95 to E5. In the past, the oil price was more than US$100 per barrel, so it was reasonable to make bio-fuel. But it is now lower than US$60 per barrel, making bio-fuel production commercially unviable.

He added drivers of taxis and commercial vehicles are regular customers of the bio-fuel.

According to the Australian Federal Chamber of Automotive Industries, the bio-fuel is not suitable for all vehicles but old models such as Audi A3 1.8L produced in 2000, Ford Laser prior to 1986, and GM Daewoo which are widely used in Vietnam.

Bui Xuan Vu, deputy general director of Saigon Fuel JSC, was quoted by news website Zing as saying that the lower-than-expected consumption of the bio-fuel is due to low consumer confidence.

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