‘ Death ‘ of petrol A95, gasoline markets will exclusively

Recently, Saigon Petro proposals with industry, in addition to gasoline E5 RON92 then only sell E5 RON 95 (i.e. will skip petrol A95). Though, this is just the business proposals but makes consumers fret, worry the “death” of petrol A95 happens exclusive status. 

After RON 92 deaths to use E100 ethanol prices RON92 E5-the raw material for gasoline E5-mixing constantly rising gasoline price rise pressure, E5. If the proposed removing the remainder of RON 95 is approved then the market only 2 types of bio-gas is E5 E5 and RON92 RON95. Currently only a single clue to provide Ethanol gasoline mix and this raised concerns about the risk of exclusive supply of E100, and rising prices make gas prices hardly cheap E5.

Concerned gasoline will exclusively as “death” A95 gasoline.

According to statistics, the first half of 2017, ethanol prices ranged between 13700-13800 / liter, then from October 10/2017 continued to increase, surpassing 14,200 VND / liter. Adjusting to the most recent period, the price of ethanol rose to 14,488 VND / liter (VAT value added). If ethanol on price increases will put pressure, increase the price of gasoline E5. Vu Kien Chinh, CEO Co. Tung Lam, said that in 10 months (6/2017 – 15/04/2018), price of cassava has increased from 3,600 dong to 5,600 dong. Thus, according to Mr. Tune, the price increase is E100 “mandatory”, not because of monopolies. In increasing the purchase price of cassava, who benefit the most are farmers. Tung Lam Company representatives look forward to the State management agencies to support, facilitate manufacturing E100 domestic rather than imported alcohol from abroad.

When the supply of E100 to mix biofuel less abundant mineral gasoline propose death RON 95 for E5 only cause for concern.

According to economic experts, the death of 95 RON petrol is not fair. Market without competition, now pressed consumers required to use E5 is unacceptable. Should, to how consumers see E5 is reasonable choices, not eliminate other products to force consumers to use E5. With the mechanisms of market economy, for consumers to have the choice. If E5 good for the environment, efficient and effective environment for the user, inevitably consumers will choose.

Nguyen Tien Thoa, former director of the Price Management Department (Ministry of Finance), emphasized: In the present context, if implemented immediately proposed eliminating petrol RON95 will be unstable due to many difficulties. It is not yet prepared all the conditions to move immediately into biofuel completely, which requires certain route to a stable resource for ethanol production (using a mixture of petrol E5), infrastructure, lowering oil trading floor … the development of materials is also incomplete and not according to plan it will be difficult for the production of certain materials for biofuel E5. If so current will produce exclusive, unstable gas prices.

Besides, many people are concerned now with the intention of petroleum monopoly E5 biofuel market while proposing “death” RON 95. While businesses also said suppliers moderate alcohol rose by E100 high price of cassava that Vietnam has not actively been supply, still have to be imported.

Deputy Minister of Industry and Trade Do Thang Hai said the proposed “death” RON 95 petrol is now. Trade and Industry Ministry will consider carefully and report to the Government in order to ensure energy security, competition in the market of 29 major enterprises of petroleum. By now solely Co. Tung Lam is the basis of providing alcohol E100 – the main raw material used biofuel blend E5 RON 92. “Source material is sufficient and competitive price or not calculated, careful consideration. We encourage enterprises to produce commodities to primarily benefit the cassava farmers. However, it must ensure the competitiveness and the market so as not to increase the price of E5 RON E5 RON 92 and 95, “Hai said.

According to Mr. Hai, the two months of the year under report E5 major enterprises achieve sales ratio of 42% of total gasoline consumption, 58% of petrol RON95 is the (previously 30%). From day 23/4 MOIT has put goods on the price of RON 95 petrol base as popular. As known, in addition to proposals abandon petrol RON95 and soon put E5 RON95 on business, represented Saigon Petro and PVOil are proposals to increase the price difference between E5 petrol RON92 and RON 95 from 1800-2000 contract, in order to create the absorbance guide consumers with higher E5, especially for taxi drivers.

Source: baodansinh.vn