Under the Prime Minister’s Decision No 49 released in 2011, new imported and domestically assembled cars must meet Euro5 emission standards, commencing January 1, 2022, and fuel in the market used for these cars must meet Euro5 standards. There are two products meeting the standards – RON 95-V and DO 0.001S-V.

However, while automobile manufacturers and importers have been strictly observing the new regulation, it is difficult to find the right types of fuel for the cars, especially diesel-run models.

Le Manh Linh, a Ford Ranger Raptop user, said the automobile manufacturer recommends DO 0.001S-V, but he often has to travel tens of kilometers before he can find a filling station which has DO 0.01S-V diesel, because there is no such station on the way from his home to office.

“Traveling tens of kilometers just to find filling stations is really inconvenient, but I have no other choice. If I use fuel which doesn’t meet standards, the automobile manufacturer will refuse warranty if the car gets troubled,” Linh said.

Nguyen Phuc Duc Hung, the owner of a next-generation car, confirmed that he once faced troubles because he used substandard fuel (he was not informed by the car dealer and there was no warning on the cap of the fuel tank)

Automobile manufacturers selling diesel-engine car models such as Ford, Toyota and Mitsubishi all have recommended DO 0.001S-V, and warned that they will refuse responsibility if users use other types of fuel.

Dao Cong Quyet from the Vietnam Automobile Manufacturer Association (VAMA) said the association has received thousands of complaints from clients about engine-related errors and exhaust gas recirculation. Manufacturers still help fix the errors, but they strongly recommend that users have to use the right type of fuel as recommended.

The problem is that the fuel distribution network still cannot satisfy demand for Euro 5 products.

There are 17,000 filling stations nationwide, but only 1,220 stations, or 7 percent, have Euro5 standards, and all of them belong to Petrolimex

In Hanoi, DO 0.001S-V diesel is available at 76 stations, or 15 percent of total stations (500). The figure is even lower in HCM City, just 70 stations, or 12 percent of total 580 stations.

The lack of filling stations providing Euro 5 fuel causes inconvenience to car drivers, especially in areas far from the centre.

Weak demand

Why don’t retailers increase the number of filling stations with Euro 5 fuel to satisfy the demand? Analysts say whether to increase the supply of fuel meeting Euro 5 emission standards depends on market demand.

Nguyen Xuan Hung, deputy general director of Petrolimex, said the largest petroleum product distributor began selling Euro 5 diesel in 2018. However, it later downsized the network because demand was weak.

He stressed that distributors are ready to sell Euro 5 fuel, but they need to calculate their investment costs for optimal business efficiency

According to Hung, as of June 30, 2024, the number of Petrolimex’s filling stations providing Euro 5 fuel accounted for 45 percent of total stations. The figure would be 28 percent if counting franchised stations.

Only 10 percent of filling stations provide Euro 5 petrol and 16 percent of stations provide Euro 5 diesel.

Bui Ngoc Bao, chair of the Vietnam Petroleum Association, said if 17,000 filling stations all sell Euro 5 fuel, the total fuel volume needed will be 15 million cubic meters per annum. Retail stations are satisfying fuel demand of 5.5 million cars of different types. Since 2017, nearly 1 million diesel-engine cars have to satisfy Euro 4 and Euro 5 standards.

“Since we don’t have Euro 4, the 1 million cars have to run with Euro 5, or 20-25 percent of total demand and supply capacity, about 4 million cubic meters,” Bao explained.

Bao pointed out that many car owners are not fully aware of the need to use the right fuel, especially petrol-run car owners. Many of them don’t want to use Euro 5 fuel because it is more expensive.

“I can say for sure that petroleum distributors don’t lack Euro 5 fuel. The problem here is weak demand,” Bao said.

Hoang Hiep