Ministry of Industry and Trade outlines E10 gasoline pricing as nationwide rollout begins.

With the nationwide rollout of E10, in an interview with PV Tiền Phong, a representative of the Domestic Market Management and Development Department, the Ministry of Industry and Trade said that the operating direction is to ensure this fuel has a clear advantage over mineral gasoline. The goal is not only to bring E10 to the market but also to create a sufficiently strong economic incentive for consumers to actively choose it. In terms of retail pricing, the representative said that the Ministry is coordinating with the Ministry of Finance and related agencies to manage under a market-based mechanism with State control. The focus is to optimize price components such as taxes, fees, and business costs, while flexibly using management tools when necessary. According to calculations, a reasonable differential between E10 and RON95 is guided at about 1,000-2,000 dong per liter, enough to attract consumers while ensuring a balance of interests among the State, businesses, and the people. Not relying solely on tax tools, the Ministry also proposes a review of the entire supply chain, from blending, transport to distribution, to cut costs and improve E10 competitiveness. “The overarching principle is to use economic instruments to regulate market behavior, rather than imposing command-and-control measures. In addition, communications efforts will be intensified to raise awareness of the economic and environmental benefits of biofuels,” the representative said. Price expectation: E10 is anticipated to be cheaper than mineral gasoline by around 1,000-2,000 dong per liter. Regarding readiness, the Domestic Market Management and Development Department noted that wholesalers and large distribution networks have basically prepared full conditions for supply, blending capacity, and logistics. However, at the retail level, some difficulties remain, mainly related to storage tanks, blending systems, conversion costs, and market caution in the early stage. In implementing E10, ethanol supply is identified as a key factor. Current ethanol demand is estimated at about 92,000-100,000 m3 per month, while domestic production meets only about 25,000 m3, with the rest imported. The gap between supply and demand requires fundamental solutions to ensure a stable input source. To gradually reduce dependence, the Ministry is coordinating with other ministries and localities to develop domestic feedstock regions, focusing on cassava and corn linked to ethanol plants. The ministry also proposes policies such as preferential credit and agricultural insurance to curb price and yield risks for farmers. In the initial stage, ethanol supply will be flexibly balanced between domestic production and imports to stabilize input prices, while forecasting and coordinating supply and demand will be strengthened. Regarding proposals such as establishing a national ethanol reserve fund or stabilization mechanisms for biofuels, the representative said these are still under study within the overall policy framework for the development of the fuel market. In the near term, priority is to complete the legal framework and boost production and storage capacity within enterprises. In the long term, storage and separate regulatory tools for ethanol will be considered based on market size, resource balance, and actual operating needs.