How the supply of petroleum to consumers in Vietnam 2018 will be like?

Each country is totally dependent on petroleum imports, Vietnam has gradually meet the domestic demand for petroleum by the refineries have been and are about to go into operation as Dung Quat, Nghi Son. 

Whether gasoline supplies to consumers Vietnam 2018 will be like?

Gasoline produced domestically abundant

calculated that, with the development and growth of the economy VN in the next 5 years, the total demand for gasoline in the country from 2018 to 2022 averaged about 6 , 5 million tons of gasoline and 8.5 million tons of diesel oil.

With demand on, current VN with oil refinery (refinery) Dung Quat is operating with a capacity of 6.5 million tons of crude oil / year. Dung Quat output to market a year around 2,746 million tonnes and 3.068 million tonnes of petrol and diesel oil. Looking ahead, Dung Quat Oil Refinery upgrading plant expansion, increasing processing capacity to 8.5 million tons of crude oil / year. The project is expected for completion in 2021.

The supply of gasoline is the 2nd largest inland Nghi Son oil refinery in commercial operation in 2018. With a design capacity of 10 million tons of crude oil / year, the Nghi Son oil refinery is expected to deliver approximately 2.3 million tons of gasoline and diesel oil nearly 3.7 million tons. Also, plants like PV Oil Condensate Phu, Saigon Petro, South Vietnam Oil, Oriental has a design capacity of about 690,000 tons of gasoline / year.

Thus, in 2018, the expected total of 2 gasoline supplies most major oil refinery in Vietnam reached approximately 6 million tons / year and almost 7 million tons of diesel oil / year. This output corresponds to approximately 92% gasoline and 82% diesel oil domestic demand. The average shortfall figure 0.8 million tons of gasoline and 1.8 million tons of diesel oil per year will be imported from neighboring countries such as Singapore, Malaysia, Thailand, Korea and China.

With strong competition in the market as above, the Company petrochemical Binh Son (BSR) – unit management and operation of Dung Quat oil refinery has been building business strategies in order to save production costs, reduce product price.

Accordingly, BSR centralized planning production according to ability and actual operating plant and flexibly adjust according to the market, the maximum capacity of the technology workshops, applying innovations and improvements aimed at optimized energy, cut costs, reduce inventory and concentrate produced many petrochemical products, products with high economic value. Besides, BSR actively expand the consumer market, increasing domestic market share as well as construction plans for exporting products to many neighboring countries in the region such as Laos, Cambodia, Indonesia …

Distributors and consumers benefit

Selling product operation of Dung Quat Oil Refinery
Source: BSR

When using gasoline produced in the country, the distribution unit and consumer products are beneficial. Domestic petroleum products BSR is providing many advantages to compete with imported products. Specifically, domestic products are not affected by the payment of foreign currency differences (imported gasoline must be paid in US dollars); time and flexible forms of receipt of goods, transport costs, import procedures quickly, and especially not to pay import tax before receiving goods as imports …

“In order to promote consumption, BSR planned sales in the warehouse company hired suit market demand, especially in the southern region, as well as flexibility with multiple forms of delivery and increase transport road to meet the diverse needs of customers. BSR also flexible billing policy in trade and leisure discount billing period; customer bonus policy and attentive customer care, “said Tran Ngoc Nguyen, CEO BSR said.

Moreover, from the date of 01.01.2017, the Government abolished regulatory revenue for oil products, liquefied petroleum gas, petroleum products for domestic consumption. BSR is automatically calculated product prices towards attracting domestic consumption clue to help the domestic market share of BSR have favorable conditions for growth.

Also, according to research by the Institute of Petroleum Vietnam made, the BSR petroleum products today have good quality. According to Vietnam regulations, the sulfur content of gasoline maximum of 500 parts per million but gasoline BSR only content from 30-135 ppm. Vietnam’s standards allow a maximum of 2.5% of benzene and gasoline Aromat in, but BSR gasoline benzene content of only 1.15 to 1.46%. The product line of the BSR diesel cars also have low sulfur, less harmful emissions. High quality gasoline is also reflected in the Dung Quat octane value (related to the quality of fire, reliability and capacity of the engine). Dung Quat is producing gasoline with RON values of 92, but the actual test results, the index is 92.6 and 92.3 (not need any kind of added additives).