VietNamNet Bridge - The HCM City Industry and Trade Department has decided that from early December, A92 non-lead petrol will no longer be available at all 514 filling stations in the city, while only E5 biofuel will be sold.

HCM City authorities have shown their strong determination to replace A92 petrol with E5 environment friendly fuel. However, doubts have been raised about the feasibility of the plan.

Some petroleum distributors such as PV Oil and Comeco have been selling E5 together with A92 petrol at their distribution chains since 2010.

However, despite the great efforts in advertising the biofuel and expanding the distribution networks, the E5 sale has been going slowly.

The representative of a distribution company warned that filling stations won’t be able to ‘survive’ if they only sell E5. 

“Instead of forcing distributors to sell E5 only, the city’s authorities should encourage them by offering investment incentives,” he noted, adding that it is difficult to persuade filling stations to sell E5 together with A92 because of the high investment needed and low business effectiveness.

He cited the report about E5 sales in the first seven months of the year to prove that E5 sales made up only 3 percent of total sales. 

T, the owner of a filling station in Hoc Mon district, said he sometimes cannot sell a liter of E5 to sedans. The sales agent in Cu Chi district said only one out of 15 existing filling stations in the locality sells E5 because E5 has been selling slowly.

Another trader in HCM City said he can sell 10 cubic meters of E5 a month only. Therefore, the revenue is not big enough to cover the investment.

“A friend of mine has given up E5 and returned to sell A92 again after a period of taking losses,” he said.

The HCM City Industry and Trade Department also admitted the low demand for E5: only 4,500 cubic meters of E5 is sold every month, or 3 percent of total sales.

However, distributors hope the sales will improve when A92 is eliminated from the market. 

“Once consumers have no other choice, they will have to use biofuel,” a trader in Hoc Mon district said.

However, he noted that E5 price needs to be ‘more reasonable’ to become popular, and that the State needs to give financial support to implement the plan to popularize biofuel.

HCM City affirmed that nine distribution companies in the city have stockpile systems large enough to satisfy the city’s demand.

PL TPHCM