E5 Biofuel Requirement in Vietnam Deadline Approaches

In Vietnam, the Ministry of Industry and Trade is not extending the January 1, 2018 deadline for petrol wholesalers to switch to E5 biofuel made from cassava. The E5 biofuel requirement is an attempt by the government to hit two birds with one stone – protect the environment and rely less on fossil fuels and economically help four biofuel plants that went out of business and create jobs and incomes for production workers and cassava farmers.

The biofuel project was approved 10 years ago but has not been used widely in Vietnam yet, thus the push from government to increase consumption by requiring the E5 biofuel by 2018. Petrol wholesalers, however, say the increased cost of E5 doesn’t make it worth selling since consumers don’t want to pay the higher prices.