Vietnam to allow only biofuel gasoline from June 1

The shift toward biofuel gasoline was announced at a conference held in Ho Chi Minh City on Wednesday to introduce Circular No. 50/2025 of the ministry outlining the roadmap for blending biofuels with conventional fuels.

Dao Duy Anh, deputy director of the ministry’s Department of Innovation, Green Transition and Industrial Promotion, said conventional gasoline will no longer be allowed on the market from June 1.

The move is expected to support the country’s green energy transition while strengthening energy security and providing additional outlets for crops such as cassava used to produce ethanol for blending with gasoline, Anh said.

Under the roadmap, all gasoline supplied for vehicles in Vietnam must be biofuel blends, leaving only two main products on the market: E5 RON92 and E10 RON95.

For certain older vehicles that are not compatible with the fuels, transitional solutions will remain in place until 2030.

To help the market prepare, the industry and trade ministry has encouraged qualified companies to begin supplying biofuel gasoline from May 1, 2026, while inspection teams will begin reviewing preparations from late March.

Anh said expanding biofuel use is an important step in Vietnam’s energy transition and will help reduce reliance on fossil fuels.

Widespread use of E10 gasoline, for example, could cut fossil fuel content in gasoline consumption by about 10 percent, while a future shift to E20 could increase the reduction to around 20 percent.

If widely adopted, biofuel gasoline could cut Vietnam’s conventional gasoline consumption by about one million cubic meters each year and reduce carbon dioxide emissions by roughly 2.5 million metric tons annually, he added.

Do Van Tuan, chairman of the Vietnam Biofuels Association, said the roadmap could help revive domestic ethanol production after years of stagnation.

Vietnam currently has six ethanol plants, including two operated by PetroVietnam and four run by private companies.

Several of them halted operations in 2018 due to weak market demand but are now preparing to resume production to supply ethanol for the biofuel market.

Tuan also noted that the biofuel program could create a stable domestic market for agricultural products, particularly cassava, reducing farmers’ reliance on volatile export markets.

Vietnam exports about five million metric tons of cassava to China each year, but demand often fluctuates, leaving farmers vulnerable to price drops during bumper harvests.

Experts say expanding biofuel use could also strengthen Vietnam’s energy security.

The country consumes about one million cubic meters of gasoline each month and still imports around 30 percent of its gasoline supply, while much of the crude oil used for domestic refining comes from the Middle East, a region prone to geopolitical tensions, including ongoing conflicts involving Israel, Iran, and the U.S. that have affected global fuel trade and transportation.

Developing biofuels is therefore seen as a way to diversify energy supply and reduce reliance on imported petroleum.

Some analysts also say Vietnam’s push to expand biofuel use could support ongoing trade discussions with the U.S., as importing ethanol from the world’s largest biofuel producer may help balance bilateral trade while ensuring a stable supply for the domestic market.