Recently, Ho Chi Minh City Petroleum Company (Saigon Petro) has continued to send a petition to the Ministry of Industry and Trade and the Ministry of Finance regarding the business and use of E5 gasoline.
According to Saigon Petro, over the past time, there have been many petitioning documents related to E5 business and use with the purpose of proposing ministries to consider and adopt appropriate policies to develop business and use. Current bio-fuel use as well as in the future.
According to Saigon Petro, E5 gasoline has not really developed in accordance with the requirements set out to replace the A92 petrol that has stopped business since early 2018.
Through reference to many clues with large mixing system and large network of petroleum trading, the proportion of E5 petrol is decreasing, especially from the beginning of 2019 here.
Particularly for Saigon Petro, the average E5 petrol ratio in 2018 is 30.06% to January 2016, 25.58%, and in March 2016 it is 19.76%.
This is the monthly data that the company has reported to the Ministry of Industry and Trade and this is also a very alarming figure, showing that the proportion of E5 petrol tends to decrease in the coming time.
The cause of low E5 consumption rate, according to Saigon Petro due to the propaganda of E5 effects of the state, localities and enterprises is still few and not regular.
In fact, many users, including those in urban areas, are not interested in E5 gasoline and use gasoline to be assured of quality and safety.
Especially, the price difference between gasoline A95 and E5 is still low, leading to the fact that gasoline users have not paid attention to E5 gasoline, the difference between retail prices of these two items is 1,530 VND / liter.
With low E5 consumption, many agents and retail stores gradually neglected the introduction of E5 petrol, even removed the E5 petrol pump cylinder and switched to selling A95 petrol.
For clue businesses, businesses that consume E5 gas strongly, the price stabilization fund of that clue enterprise will decrease significantly. While the key businesses do not have E5 petrol, the price stabilization fund is still guaranteed. This will discourage businesses from selling E5 gasoline.
The consumption rate of E5 in Ho Chi Minh City accounts for 30-40%.
Regarding tax policies to develop bio-petrol, Saigon Petro continues to petition in addition to promoting propaganda and to create a gap between price difference and gasoline A95 big enough and in accordance with the regulations on environmental protection tax bracket. , propose to apply environmental protection tax on absolute value for each type of gasoline.
Consideration should be given to reducing E5 environmental protection tax in absolute numbers appropriately (VND 500-1,000 / liter), not including E5 petrol environmental protection tax at the current ethanol rate. Currently, the environmental protection tax difference is only VND 200 / liter. The goal is to create retail price differences between E5 and A95 gasoline at around 2,000-2,500 VND / liter. Saigon Petro believes that this is a basic and long-term measure to apply.
At the same time, unifying policies to extract and use the price stabilization fund between mineral petrol and E5 petrol. Saigon Petro suggested the Ministry of Industry and Trade and Finance should take necessary measures to encourage consumers to use E5 gasoline as well as traders in the petroleum trading system. Especially the key enterprises invested in large E5 gasoline mixing system.
According to Ho Chi Minh City Department of Industry and Trade, currently the consumption of gasoline in HCM City is stable. Estimated 5,719m3 / day of which A95 is 3,660 m3 / day, E5 is 2,059m3 / day. A95 gasoline consumption rate accounts for 60-70%, E5 accounts for 30-40% of total consumption. The distance between E5 and A95 petrol is about 1,500 VND / liter. If E5 gas prices are much more different, consumers will switch to using E5 more.
