A station selling E5 gas in Hanoi (Source: VNA)

Hanoi (VNA) – The environmentally-friendly E5 petrol is sold across the country from December 1, in accordance with the Prime Minister’s Decision No 53/2012/QD-TTg.

The E5 grade bio-fuel, which has 5 percent ethanol and 95 percent petrol, is offered at a price which is 500 VND lower than that of RON 92.

According to the Ministry of Industry and Trade's Science and Technology Department Vietnam has seven factories producing ethanol, of which four have ethanol meeting quality standards to process E5 petrol.

The four factories have a total capacity at 318,000 tonnes of ethanol to process 4.78 million tonnes of E5 petrol. Meanwhile, three other factories need more investment to produce ethanol that reaches quality standards to process bio-fuel.

So far this year, E5 petrol has been sold at seven cities and provinces, including Hanoi, Da Nang, Can Tho, and HCM City, in addition to Quang Nam, Quang Ngai and Ba Ria Vung Tau.

The nation has three E5 petrol processors, including the Vietnam National Oil and Gas Group (PetroVietnam), the Vietnam National Petroleum Group (Petrolimex) and PetroVietnam Oil Corporation (PV Oil).

Petrolimex plans to expand the retail system of E5 fuel at all its petrol stations nationwide.

Meanwhile, PetroVietnam has 359 E5 petrol retail stations in 52 cities and provinces nationwide. The group has processed a total output of 80,000 cubic metres of E5 petrol per year, which is enough supply for its distribution system.

By the end of this year, PetroVietnam's petrol stations in eight cities and provinces will sell only E5 petrol. It will sell bio fuel products at around 90 percent of its petrol stations in the remaining cities and provinces by the end of 2016.-VNA