Ministry of Industry and Trade adjusts Environmental protection tax to boost use of E5RON92 gasoline

	Bio-fuel consumption increases 31.8%
	E5 RON92 gasoline consumption is good
	Environmental protection tax for biofuel must comply with the principles of taxes

Illustrative photo. Source: Internet

According to the Ministry of Industry and Trade, the amount of E5RON92 gasoline consumed in the whole country in the first three months of the year reached about 740,000 m3, equivalent to about 37.8% of total gasoline volume (for all of 2018, E5RON92 gasoline consumed about 3.148 million m3, equivalent to about 42% of the total amount of gasoline.)

Some fuel wholesalers have a high consumption structure of E5RON95 gasoline compared to the total amount of petroleum products consumed in the first three months such as: Military Petroleum Corporation reached about 67.5%; Vietnam Oil Corporation reached about 46.4%; and Vietnam National Petroleum Group reached about 43%.

The Ministry of Industry and Trade has pointed out that the promotion of E5RON92 gasoline consumption has faced many difficulties. Currently, the Environmental Protection tax rate for E5RON92 gasoline is 95% of the tax rate of RON92 of VND 3,800/ litre because E5RON92 gasoline is a mixed product of 95% RON92 and 5% E100 ethanol.

To encourage consumption, the Ministry of Industry and Trade said the Government should increase the price difference between E5RON92 gasoline and RON95 gasoline through adjusting the Environmental protection tax on E5RON92 gasoline because this product has replaced RON92 gasoline for environmental protection purposes.

According to the results of studies, the use of E5RON92 gasoline significantly reduces emissions causing environmental pollution such as CO gas (down 27.76%) and HC (down 16.23%) compared to common mineral gasoline. Therefore, it is necessary to consider providing the environmental protection tax on E5RON92 gasoline based on the emission level (75-80%) of the tax rate for mineral gasoline.

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The Ministry of Transport shall coordinate with car makers and operators to make recommendations soon and inform drivers to use E5RON92 gasoline.

The Ministry of Agriculture and Rural Development will organise the planning of a source of cassava material to produce E00 ethanol for blending with E5RON92 gasoline in particular and biofuels in general.