Vietnam Expands E10 Biofuel Sales Points Ahead of 2026 Mandate
Vietnam is ramping up its E10 biofuel distribution ahead of a nationwide mandate set for June 1, 2026, with PetroVietnam Oil Corporation launching sales at over 50 locations. While E10 consumption has increased by 12-18% in some areas, it currently accounts for only about 10% of daily gasoline sales. Retailers face challenges such as evaporation losses and the need for profit margins to exceed 7% to ensure profitability.
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Vietnam is expanding its E10 biofuel distribution in preparation for a nationwide mandate set for June 1, 2026. PetroVietnam Oil Corporation (PVOIL) launched E10 sales on August 1, 2025, with over 50 stores in cities including Hanoi, Hai Phong, and Ho Chi Minh City, reporting an average consumption of approximately 1,000m3 per month.
Petrolimex is also piloting E10 RON95-III at 40 stores in Ho Chi Minh City and Quang Ngai Province. Despite a 12-18% increase in E10 consumption in some localities, it still only represents about 10% of daily gasoline sales.
Retailers face challenges such as evaporation losses of 0.25-0.4% per cubic meter monthly, which are not recognized as valid costs. For profitability, profit margins need to exceed 7%, and retail commissions should be VND1,400-1,600 per liter. Dung Quat Oil Refinery plans to supply 100% E10 by the June deadline, while Dung Quat Biofuel Plant will restart in January 2026 to meet blending demands.
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