HCM City One-Member Limited Liability Oil & Gas Company (Saigon Petro) is seeking Ministry of Industry and Trade for support following low demand for E5 biofuel.
According to Saigon Petro, the average proportion of the firm’s E5 biofuel out of the total petrol sales was 30.06% last year. However, the rate was just 25.58% in January this year, 22.74% in February and 19.76% in March.
The fall has been forecasted to continue in the coming time.
The company blamed the E5 slump use for the limited efficiency of activities to promote the biofuel by the government, localities as well as fuel traders.
Meanwhile, many people still doubt the quality of E5 petrol.
The price disparity between E5 and RON 95 is quite small at just VND1,530 per littre at present, but as a result, many petrol stations have stopped selling E5 biofuel.
Another reason is that the price stabilisation fund given to fuel traders with high sales of E5 remains modest, discouraging them from the sale of E5 biofuel.
To improve the situation, Saigon Petro proposed reducing the environmental tax for E5 biofuel and raising the price difference between E5 and RON 95 prices to some VND2,000-2,500 per littre to encourage fuel traders to sell this type of petrol.
In addition, programmes to promote E5 biofuel to the public should be strengthened.
Source: Dtinews
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