Business Business

12/12/2017 - 09:28

Preparations for the switch to bio-fuel E5

Petroleum trading enterprises in the province are actively investing, improving and upgrading their infrastructure and storage tanks so as to follow the roadmap on shifting the distribution of RON A92 to bio-fuel E5 from early 2018.

According to the roadmap, bio-fuel E5 will replace RON A92 petrol in early 2018

Getting ready for the supply 

There are about 124 petrol stations in the province. According to the statistics, the total petrol consumption in the area is from 72,000 to 75,000 cubic meters per year. Particularly, the sales of the Petrolimex Hue Co., Ltd. are from 58,000 to 59,000 cubic meters. As a unit accounting for over 78% market share of petrol, the company has taken the initiative in checking its facilities, improving its storage tanks for bio-fuel E5; as well as designing and replacing fuel pumping facilities for biofuels in accordance with the standards, so as to implement the Government's guidelines to completely replace RON A92 petrol with bio-fuel E5 from the beginning of 2018.

Ms. Dinh Nhat Le, Deputy Director of Petrolimex Hue Co., Ltd. said that the unit planned to adapt 800 cubic meters of tanks for storage of bio-fuel E5. As bio-fuel E5 is easy to volatile and soluble in water, the storage must be ensured; therefore, the company has to make contracts with specialized units to rinse over 30 storage tanks and replace some pipes and gaskets. Expectedly, from the end of 2017, the company will sell bio-fuel E5 throughout the system.

Up to this time, there have been 10 petrol stations out of the total of 32 petrol stations owned by the Petrolimex Hue Co., Ltd. trading bio-fuel E5. However, due to the low demand, the sales of bio-fuel E5 account for only 6-7% of the total sales of the whole company. In addition, there have been about 6 petrol stations owned by the PV Oil Thua Thien Hue Joint Stock Company, Military Petroleum Company Region 2 and some private enterprises selling bio-fuel E5 with the consumption of about 200 cubic meters per month.

Despite the low and consumer-dependent sale, the petroleum trading enterprises and units in the area have taken the initiative in importing bio-fuel E5 from the mixing stations in Da Nang, ensuring the distribution and meeting the demands of the market, in order to implement the plan to stop selling the RON A92 petrol and switch to bio-fuel E5 or RON A95 petrol in the domestic market from early 2018.

At present, PV Oil Thua Thien Hue Joint Stock Company is installing its bio-fuel E5 mixing station with the capacity of 200 cubic meters per day at Chan May Petroleum Terminal (Phu Loc). The station is expected to be put into operation on December 25, ensuring the supply of bio-fuel E5 to the market with the capacity of about 17,000 cubic meters per year.

To distribute bio-fuel E5 in replacement of RON A92 petrol following the roadmap, the Department of Industry and Trade has asked the petroleum trading enterprises and units in the area to review and prepare facilities; at the same time, mobilized the petroleum wholesale enterprises such as PV Oil Thua Thien Hue Joint Stock Company, Petrolimex Hue Co., Ltd, and Military Petroleum Company Region 2 to continue to support the sanitation technology, improve storage tanks and facilities supplying bio-fuel E5 to petrol stations in the province, as well as issue sales commission policies to encourage agencies and petrol stations to participate in the distribution of biofuels, ensuring the sufficient supply of bio-fuel E5.

From early 2018, consumers have only two choices of using bio-fuel E5 or RON95 petrol.

Depending on consumer demands

The supply is basically ensured, and it is deployed according to the roadmap by the petroleum wholesale enterprises. The remaining issue is the needs, as the adoption of bio-fuel E5 depends on the consumers.

According to the enterprises’ recommendations, in addition to the propaganda and the encouragement of using bio-fuel E5 to protect the environment, and the lowering of tax on bio-fuel E5 to reduce its price, there should be empirical research conducted by scientists specializing in machinery to determine the influences of bio-fuel E5 on the vehicles and whether it can damage the machinery in the way that concerns consumers. However, in practice, there are more than 50 countries in the world using bio-fuel E5; including Thailand, which has used bio-fuel E5 and E10 petrol for many years.

Deputy Director of Petrolimex Hue Co., Ltd claimed that the business depended entirely on market demands. The company is exploring the market, doing market survey, working with taxi companies, and grasping the needs so as to plan for the preparation of the supply.

Petroleum trading units are also promoting visual communication as well as information on the benefits of using bio-fuel E5; at the same time, focusing on the quality, the preservation and fire protection.

Story and photos: Hoai Thuong

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